China is the world’s largest and fastest growing automotive market in the world, but the focus of the biggest Chinese policy makers, pundits and executives now is the well-being or fate of the country’s indigenous brands.
Some companies, such as Geely, are doing fine and governmental agencies, particularly local governments with a stake in the so-called state-owned enterprises, or SOEs, are doing what they can to assist the homegrown, according to information presented during the course of the two-day Global Automotive Forum, which was held last week in Wuhan, China.
China is clearly willing to use subsidies for energy-efficient vehicles, rationed parking stickers and anti-trust enforcement to help bolster the indigenous brands, which have have steadily lost marketshare during the past 18 months. In addition, a new study by the Boston Consulting Group found the more than 80% of the Chinese consumers who expect to buy a car soon prefer foreign brands. (more…)