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Three Chinese Automakers Expect to be Global Players

Industry official predicts exports to emerging markets.

by on Oct.16, 2014

The Geely Gleagle is one of the products that makes Chinese government officials believe three Chinese automakers will be globally influential.

China’s fast-growing automobile industry should be able to create at three strong globally competitive carmakers in the years to come, according to a Chinese government official this week.

Wang Xia, a senior official with the China Council for the Promotion of International Trade Automotive sub-council, acknowledged during a press conference prior to the opening of the Global Automotive Forum in Wuhan, China, that China’s homegrown auto industry has been rocked over the last several months by a steady loss of marketshare.

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Up until about two years ago, Chinese brands held about 46% of the domestic sales across China. Since then, the Chinese domestic brands have lost about 10 points of marketshare to foreign brands. The big winners have been European brands as well as General Motors and Ford. (more…)

About $1.5 Billion Missing at China’s 2nd-Largest State Automaker

Chairman resigns, over 100 senior managers under investigation.

by on Apr.15, 2013

The FAW scandal has touched the highest ranks of the company -- and beyond.

China’s endemic problem with corporate corruption appears to have caught up with the booming Asian nation’s second-largest state-owned automaker where as much as $1.5 billion may have been embezzled.

That has led the chairman of First Automobile Works Group, or FAW, to resign, while more than 100 senior managers have been questioned and some detained, according to reports out of China. The worsening scandal has also touched the ruling Communist Party, a deputy party secretary from Jilin province among those who have been grilled over the situation.

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The scandal has been rapidly escalating in recent days though it appears to have stemmed out of concerns first raised in late 2011 when reports surfaced of a number of bribes worth about $15 million allegedly handed out in connection with parts purchasing, plant upgrades and other projects.


Chinese Auto Market Grows to 40 Million Annually?

Annual vehicle sales to reach 30 million by the beginning of the next decade, 40 million at end. SAIC buys General Motors?

by on Jan.07, 2010

Big country, big population, big growth, and already the world's largest market.

The booming Chinese market will grow to 19 million units of annual sales by 2016, according to the experts from the global auto consultancy practice at PricewaterhouseCoopers.

That would make China the largest maker and consumer of vehicles in the more than 100-year history of the business.

Moreover, you ain’t seen nothin’ yet, at least according to some speculation by me and other sources.

If these pro-Chinese factions are right, the home market could reach 30 million units by 2020 or so, and barring a political upheaval – a genuine risk that virtually everybody acknowledges– it could grow to 40 million units by the end of that decade. Who knows?

This means that Chinese makers will be hard pressed to keep up with internal demand and most Chinese cars — except for maybe the odd few Geely or Chery models — will not be exported. Actually, given their current quality, I argue that  it would be better for established automakers if the Chinese did export large numbers of vehicles  right now. Remember the  Korean-built Hyundai Excel of the 1980s? It was so bad, except for the eastern European Yugo, that it set back Hyundai marketing in the U.S. for decades.

Many of the assumptions made about China are wrong, such as a coming Chinese export wave that enthralls media types and the opining classes, cautions Steve D’Arcy, a partner in PWC’s Global Automotive Practice.


There will be no massive wave of exports emerging out of China because Chinese makers will barely be able to keep up with burgeoning demand. Hence the 19 million prediction for 2016. As Chinese annual income levels keep rising to equal an average vehicle price of 38,000 RMB or ~$5,600 for a basic car, D’Arcy sees now reason why China won’t remain the world’s largest auto market, he theorized at press luncheon in Detroit today.