The fast growth of China's auto industry attracted much attention
during the outbreak of severe acute respiratory syndrome (SARS).
The surging market again indicated the importance of China in the
global vehicle industry. China's huge buying potential was evident
before the influence of SARS and is set to continue, according to
industrial analysts.
With one tenth of the total national market, the car market in
Beijing has been booming. Due to gradual changes in consumption
trends, China's auto market will not cool down significantly after
SARS, said Zhang Xiaoyu, vice president of the China Machinery
Industry Federation.
According to his prediction, if China's auto industry maintains the
same high growth of 37.6 percent in the first four months, the
output will reach two million by the end of 2003.
The pursuit for independent and secure traveling space propped up
China's flourishing sedan market. Families with cash in hand but
still waiting bought sedans directly after SARS. Families that did
not have enough savings bought using installment plans.
Household sedans, as an independent and free transportation
vehicle, were accepted by more and more Chinese people. The disease
induced a concept, a demand, and changed some people's consumption
habits, said Kenneth Hsu, vice president of Ford Motor China.
Sun Li, a bank employee, drove his new green Polo on less busy
streets in downtown Beijing. He said, a car was just as necessary
as a mask. Installment payments enabled him to fulfill his dream
earlier. Loans became more popular among potential buyers and in
Beijing alone, 30 percent of buyers in March opted for installment
plans. The figure rose to 50 percent in April.
Some auto manufacturers responded quickly when SARS came. In May
Sonata promoted the first air-cleaning equipment, which can
automatically clean out dust and keep fresh air within the car.
"Some 352 such vehicles were sold in China in one week. Paying
attention to environment and health will lead more manufacturers to
develop and explore clean sedans," said Sonata salesman Chen
Shiqiang.
Improved sales methods will attract more customers. The procedure
of buying license plates and insurance was made easier during the
SARS period. China can shorten and facilitate license plate
applications by combining Internet and traditional sales systems,
said Jia Xinguang, a professional auto researcher.
Pushed by high demand, many manufacturers chose to increase output
capacity. Analysts said SARS will not only influence the
consumption but also the production of the vehicle market
nationwide.
Statistics showed China's sedan output reached 165,000 in April, up
85 percent compared with the corresponding period last year. Sales
amounted to 120,000. In Beijing alone, over 1,600 new motor
vehicles were registered on average every day, with the peak day
reaching 2,263.
Many economic sedans became cheaper in May. Some 30 new types will
debut in the second half of 2003. Experts said lower prices and new
products will benefit consumers.
Government support propelled China's surging auto market. In order
to promote economic development in the SARS period, China will
hurry to issue related auto policies. Experts said the auto
industry, with high expectation of stimulating internal demand,
will shoulder more responsibility to ensure the fulfillment of
China's annual economic goal.
(Xinhua News Agency May 30, 2003)