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China to Encourage Consolidation in Auto Industry; Push to Increase Market Share of Domestic Automakers

China Daily. China’s central government plans to implement a new policy in the first half of this year to encourage auto industry consolidation and further the development of Chinese-brand passenger vehicles, an official from the Ministry of Industry and Information Technology said at a recent news conference.

According to sources with knowledge of the new policy, it intends that Chinese-brand passenger vehicles will comprise at least half of vehicle sales by 2015 and sedans made by entirely domestic automakers will have about 40 percent of the nation’s car market.

The new policy will also focus on accelerating consolidation between automakers and could lead to a new round of reshuffling, industry insiders said...There are now more than 130 carmakers across the country, but most of them are small enterprises with annual production and sales of fewer than 10,000 units. Only five had sales of more than 1 million units last year as the country’s top 10 carmakers moved a total of 11.89 million vehicles to account for 87 percent of overall sales, according to market data.

According to data from the China Association of Automobile Manufacturers (CAAM), 4.58 million Chinese-brand passenger vehicles were sold last year, some 44.3% of the total. Sales of domestic sedans hit 2.22 million units, almost 30% of the segment.

SAIC Motor Corp, FAW Group, Dongfeng Motor and Chang’an Motor are the top automakers. Beijing Automobile, Guangzhou Automobile, Chery, Geely and Sinotruk form the second tier in the country’s auto industry.



china has taken over the market in electronic and automotive industries with a rapid progress in their technology and providing product at cheaper cost.This essentially beneficial for customers but a threat to the international market.
Rob Poulos

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