Future Trends in Chinese Automotive Market

Speaking of car in China is completely different from other countries, most of the world you can imagine as a heated automobile market without limits only on the basis of volume and sales strategy to keep the current volume and survive at least. In China's automotive market in emerging markets with high growth ratio each year. Last year, China's passenger car and commercial vehicle market is growing about 40 percent and is currently China's largest market for the automotive world. Predicting future trends is not easy, but there are some trends that will surely go on strongly in the near future:

1 Growth: growth rate will certainly always double digit. It is easy to understand why. Only 1 over 7 Chinese have a car so that the internal market is indeed huge and China is growing at double-digit country as more and more Chinese will not afford to buy a car, especially in the rural province where the rate is significantly lower than in big cities like Shanghai and Beijing, which is opposite to the market will be slow and because the first cars to roads and infrastructure, and large cities have become overloaded in those years.

2 Consolidation: There are still more than 100 car manufacturers in China and many small local suppliers. As in Europe and the U.S. is expected consolidation in the market. Probably a car with volumes around 10000-100000 cars per year will disappear, but consolidation is moving slowly, as the Chinese internal market should be low cost for cars and so many small cars with only internal production in the car with several technology can provide low cost, although it mean low quality, because the assembly lines of these cars are still in full use. Labor costs and general welfare of the increase will lead to greater demand and by the end of melting of most of these small cars. And the same will happen for small low-quality suppliers.

3 EV: EV stands for electric vehicles. Since China has many problems related to pollution, the EV is definitely a trend that will grow. Keep in mind that the largest electric battery suppliers around the world are in China, and the majority of EV vehicles are being developed in China, starting from these suppliers. Remember that the biggest supplier of electric batteries, BYD is also the manufacturer of the car and someone like Warren Buffet is a shareholder in the company.

4 Quality: level of quality of Chinese cars is increasing every year, especially foreign automakers really want the same quality standard in Europe and the U.S. also apply in China. Moreover the Chinese consumer is becoming every year more and more aware of quality standards, and in the future will also be able to pay for it. As suppliers from around the world and try the local barely have the same technology and quality as in Europe and the U.S. as a result of improvements to customer.

5 Exports: Surely there is a big internal market, but the goal of most domestic automakers has become a worldwide manufacturer of automobiles. Geely is trying to make the Volvo, others try to run facilities in other markets like the Middle East or Africa and Eastern Europe. It is also preparing for the arrival in the U.S. and Europe, but first a question of quality must be understood and digested local cars. EU and U.S. are still close and the boom of foreign suppliers in China, who are helping the market to become aware of technologies that are not available before.

6 Luxury Brand: EU and U.S. luxury car manufacturers such as Ferrari, Porsche, Bentley, Rolls Royce will flourish and China will become its first to market. For some, it is already. It is easier to find very rich people in the country with 1.4 billion inhabitants, and that double-digit increases every year. Moreover the Chinese see cars as a status symbol.

7 Financing: Finance companies secure the car loan will have a good time in the next few years, as more and more Chinese want the car and the car is seen as a status symbol, but we have ways of financing a car purchase in China is weak in comparison with other markets .