GUANGZHOU, China ( Reuters ) – car sales growth in China will remain stagnant adjacent year in the absence of incentives for buyers and China ’ s fast accredit control, raising pressure on car makers to cut prices and improve after-sales services, diligence executives and analysts said on Monday. A Guangzhou Automobile Group ( GAC ) logo is seen at a booth at the 9th China ( Guangzhou ) International Automobile Exhibition in Guangzhou November 21, 2011. REUTERS/Tyrone Siu LOGO ) China, the universe ’ mho largest automobile market, is probably to see car demand grow between 3 and 10 percentage in 2012, compared with about 5-6 percentage expected for this year and down from 33 percentage in 2010, diligence executives said at an car show in Guangzhou. While automakers remain confident about the long-run lookout for China, as evidenced by a batch of expansion projects some have announced in late years, near-term prospects are not promising amid ball-shaped economic uncertainties.

“ China ‘s car market is identical bully this year. You can see that from the January to October data, ” said Zeng Qinghong, president of Guangzhou Automobile Group Co Ltd 2238.HK, a chinese partner of Toyota Motor Corp 7203.T, Honda Motor Co Ltd 7267.T and Nissan Motor Co Ltd 7201.T. car sales in China climbed precisely 1.4 percentage in October, causing emergence for the inaugural 10 months to ease to 5.9 percentage as the government removed subsidies on small cars and raised the eligibility for fuel-saving incentives. China ’ sulfur car sales should grow about 6 percentage this year and should be roughly the lapp in 2012, said Zeng. “ Sales are affected by government policies, including banks tightening lend. We can feel that. Dealer credit and car financing are besides tightening, ” Zeng added. Zhang Baolin, president of Chongqing Changan Automobile Co 000625.SZ, was more pessimistic, forecasting sales to grow ampere little as 3 percentage in 2012 from 18.5 million units estimated for this year .


Slowing sales growth, coupled with capacity expansion may push some automakers to cut prices or spend more on after-sale services to drive increase, with rival focused on models priced at 200,000 yuan ( $ 31,500 ) or more, analysts said. Some car dealers told Reuters that although they had not announced price cuts, they had started providing cash rebates for buyers. Fang Qinliang, sales coach at Guangzhou Mingzhi Auto Trading cobalt Ltd, said his caller, which sells Emgrand trade name sedan cars made by Zhejiang Geely Holdings Group Co Ltd, would provide a cash rabbet of 2,000-3,000 yuan for each car sold.

Some of his diligence colleagues would provide cash rebates of up to 20,000 yuan on other models, he said. “ Price competition, which has already been seen earlier this class, will inactive be there as a direction to net inventories, ” said Linus Yip, headman strategist at First Shanghai Securities. “ But it will not be a main theme as the car makers have been putting more effort into providing quality services … to draw electric potential buyers, ” he said, adding that the current share prices of some Hong Kong-listed Chinese automakers reflected slowing car sales growth .


High-end cars were doing much better in terms of sales growth, partially because the market had only recently begun to take off, executives and analysts said. Volvo, owned by China ‘s Geely Automobile Holdings Ltd 0175.HK, should see 40-50 percentage sales emergence in China next year, said Richard Snijders, president and headman executive of Volvo ‘s China distribution unit of measurement. Volvo expected to sell 48,000-50,000 cars in China this year, said Snijders, improving from good over 30,000 units last year. “ The chancellor grocery store is not affected as much. We are hush a belittled musician in China. We can still grow fast because we can be a bite more agile and a spot better than what we have been doing, ” he added. A China joint speculation of french car godhead PSA Peugeot Citroen PEUP.PA and China Changan Automobile Group said on Sunday that it planned to tap the premium cable car grocery store in China.

german bounty car manufacturer BMW AG ‘s BMWG.DE third-quarter earnings surpassed expectations, bolstered by robust growth in China and necessitate for its 5-Series sedan. extra report by Donny Kwok ; Writing by Charlie Zhu ; Editing by Chris Lewis and Matt Driskill Our Standards : The Thomson Reuters Trust Principles .

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