China's auto exports see continued decline
Continuous slide in exports is one of the biggest challenges for China's own-brand cars
Figures show that growth in China's auto exports has been declining for several consecutive years. In 2006 export sales doubled, but in 2011 growth was only about 50 percent; in 2013 exports witnessed negative growth, with decreases of 2 percent and 29 percent in the second and third quarters respectively.
China exported 710,000 vehicles in the first three quarters of this year, an 8 percent decline compared with the same period of last year. At the same time the price per unit has also dropped, from 14,400 U.S. dollars to 13.200 U.S. dollars.
In September exports decreased by 28.9 percent compared to the same month in 2012, a further decrease from August, according to data released by the China Association of Automobile Manufactures.
Analysts believe that market instability and the political situation in China's principal target countries are the main factors causing the decline. China's auto exports to Russia, South America and the Middle East have been particularly hard-hit. As of the end of August, exports to Russia have dropped by 4 percent.
While exports to Chile, Peru and Colombia remain moderately strong , demand in Algeria, Iran and Iraq is weak.
Currency depreciation in India and Chile is a further reason for caution among China's auto enterprises. Wang Shunsheng, assistant general manager of Guangzhou Automobile Group, told this reporter that the company had planned to expand the market in Chile, but its currency has depreciated by 10 percent while the Chinese yuan has been appreciating, increasing the problems of auto exports. The company is considering selling at a fixed exchange rate to lower the risk.
But while China's own-brand cars have been penetrating foreign markets, there have been few signs of any obvious improvement in brand value and quality.
In 2012, while China's auto production and sales increased by 8 percent year-on-year, sales of domestically-branded autos grew only 4.5 percent, lower than overall industry growth.
According to a survey conducted by Boston Consulting Group in over 70 countries and regions, the future of Chinese auto exports lies in 88 markets outside the European, American, and BRIC countries. Production and sales in these countries are expected to reach some 21 million units in 2020.
Thus the question how to improve the quality of Chinese-made vehicles and penetrate the high-end market is key to the future prospects of Chinese auto enterprises, since the high and middle-end markets are still dominated by vehicles from Europe, Japan and South Korea.
China exported 710,000 vehicles in the first three quarters of this year, an 8 percent decline compared with the same period of last year. At the same time the price per unit has also dropped, from 14,400 U.S. dollars to 13.200 U.S. dollars.
In September exports decreased by 28.9 percent compared to the same month in 2012, a further decrease from August, according to data released by the China Association of Automobile Manufactures.
Analysts believe that market instability and the political situation in China's principal target countries are the main factors causing the decline. China's auto exports to Russia, South America and the Middle East have been particularly hard-hit. As of the end of August, exports to Russia have dropped by 4 percent.
While exports to Chile, Peru and Colombia remain moderately strong , demand in Algeria, Iran and Iraq is weak.
Currency depreciation in India and Chile is a further reason for caution among China's auto enterprises. Wang Shunsheng, assistant general manager of Guangzhou Automobile Group, told this reporter that the company had planned to expand the market in Chile, but its currency has depreciated by 10 percent while the Chinese yuan has been appreciating, increasing the problems of auto exports. The company is considering selling at a fixed exchange rate to lower the risk.
But while China's own-brand cars have been penetrating foreign markets, there have been few signs of any obvious improvement in brand value and quality.
In 2012, while China's auto production and sales increased by 8 percent year-on-year, sales of domestically-branded autos grew only 4.5 percent, lower than overall industry growth.
According to a survey conducted by Boston Consulting Group in over 70 countries and regions, the future of Chinese auto exports lies in 88 markets outside the European, American, and BRIC countries. Production and sales in these countries are expected to reach some 21 million units in 2020.
Thus the question how to improve the quality of Chinese-made vehicles and penetrate the high-end market is key to the future prospects of Chinese auto enterprises, since the high and middle-end markets are still dominated by vehicles from Europe, Japan and South Korea.
