Year 2002 saw China surpass 3.25 million in its auto-vehicle
output, an increase of 38.5 percent over the same period of the
year before, of which the sedan-car was added up to 1.09 million, a
growth of 55 percent, hence telling an unprecedented speed.
Some 40 years elapsed when China's vehicle output and sales reached
one million in number and it again took 8 year to go from 1 million
to 2 million. But only 2 years are spent for China's auto output to
exceed 3 millions. According to the "10th Five-Year Plan" published
in July 2001 China's vehicle output and sales were expected to
break through 3 million by 2005. However, only one and a half year
has passed before the goal of 3 million vehicles was obtained ahead
of the schedule. 2002 saw China's vehicle output and sales be
raised to the 5th place of the world from the 8th in 2001 while the
auto output from the 14th to the 10th place of the world.
According to the figures of the National Bureau of
Statistics the contributions made by the transportation
equipment manufacturing industry of the vehicle industry to the
growth of the whole industry during the previous 10 months of last
year came to 13.3 percent. It pulled the industry to grow by 1.65
percentage points, taking up the 2nd place and the contribution to
the growth of the industry profit was 22.5 percent, ranking at the
top of the industry. The vehicle industry has, so to speak, become
in name as in reality a motive force for the growth and enhancement
of efficiency of the industry.
The vehicle industry played a more outstanding role in expanding
the domestic needs and stirring up consumption. A consuming rate of
the commodities in society brought out by the National Bureau of
Statistics tells that the vehicle consumption increased by 1.4
times in 2002, topping all other commodities in that year.
As
one of the industries bearing the brunt, which road was China's
vehicle industry going to take after China's WTO entry? Whether the
auto market would become languid? These were topics ever been
concerned and always on the lips of the people. What was the reason
behind it that helped the explosive increase of the vehicles,
especially the car market?
Chen Hong, general manager of the General Motor Co. in
Shanghai holds that the high growth is the result brought about
jointly by many favorable factors. First of all, the Chinese
economy spelled out a strong growth as a whole, showing an annual
GDP increase of 8 percent, people's income going upwards while the
price for vehicle was going down. All this has greatly raised the
purchasing capability of the common people. Secondly, people came
to understand fully that the auto price wouldn't see a drastic
downturn immediately after China's entry into the WTO and so
people's demands for autos simmered, money in hand, for years was
given a free rein. Thirdly, a new environment has come to appear
for the auto-consumption.
Of
course, a favorable situation couldn't be separated from the
endeavors of the auto enterprises. 2002 saw through the whole year
the acquisition, reorganization and/or forming joint-venture
partner among auto-enterprises. The beginning of the year started
the reorganization of the East Wind, the Pride and the Kia Motor
Cos. and by the end of the year we saw Shanghai General Motor
acquired the auto-body project of Yantai. In view of the market
needs, the three auto groups of FAW, East Wind and Shanghai Motor
Co. set out one after another to adjust and reorganize the
resources at home. So far, the three big auto groups have amassed
about 50 percent of auto production in China, and plus other 6
major enterprises, the concentration of auto production has now
come to over 90 percent.
In
the meantime when the three big groups were expanding themselves,
they stepped up the cooperation with foreign capitals. The FAW
joined hands with Toyota and East Wind had a full cooperation with
Nissan and with PSA Group too while Shanghai Motor expanded its
cooperation with Volskwagen. All transnational auto cos. have been
introduced into China. The most direct effect of joint venture and
cooperation manifests in the high frequency of bringing the new
autos into the market with an enhanced service level, providing
consumers with diversified choices. According to statistics, we saw
being brought into the market almost 30 types of new cars, which
has taken up more than 60 percent of the car market.
According to the estimation of the National Information Center the
country sees an auto-need of 3.8 million in 2003, an increase by
20.6 percent as against the same period of last year, of which the
homemade car will come to 1.435 million, an increase of 26.4
percent on that of the same period. Does the auto market look
really so good this year?
"The fine perspective of the auto market in 2003 is based on the
following reasons," Zhao Zengjun, director of the marketing
department of the FAW-Volskwagen said. He holds that the
macro-economy tends for the better and the construction of a
well-off society as a whole has provided a prerequisite and basis
for the development of the auto industry. Besides, next year won't
see a big margin of reduction in custom-tariff and so the imported
car won't entail a big impact on the auto market. The progress of
auto-credit business and second-hand car market will all serve to
promote the development of the auto market.
Of
course, a fine trend must be paired with good policy. Gan Zhihe,
deputy secretary-general of the State Economic
and Trade Commission pointed out that China is not only a
potential market for auto industry but also a market in reality in
which it sees a great attraction and a fastest speed for
development.
As
learned, to support the development of the auto industry, the
government departments concerned will put forward four related
policies. They are, "policy for auto consumption", "regulation for
management of auto-industry investment", "relevant regulation on
further promotion for the development of auto industry" and
"management measures on financial organs of auto industry and
auto-loan for individuals".
(People's Daily January 15, 2003)