China's automakers have consolidated their presence on their
home turf with increasing sales despite fierce competition from
foreign peers, according to the China Association of Automobile
Manufacturers.
About 982,800 sedans under local brands were sold in 2006,
accounting for 25.67 percent of the total sales. The proportion
rose by 4.13 percentage points over that in 2004, CAAM figures
reveal.
Jiang Lei, sectary-general and standing vice chairman of the
CAAM, called the growth "hard won" as foreign brands have long been
pressing ahead on the sedan market.
At CAAM's annual meeting held Sunday in Beijing, Jiang
attributed the growth to the rising awareness of local auto makers
for better designed automobiles.
A number of posh sedans were rolled out by Chinese auto makers
including Roewe, made by the Shanghai Automotive Industry
Corporation, King Kong by the privately-owned Geely, and Red Flag
HQ3 by the First Automobile Works, China's largest auto maker.
For many years Chinese brands were regarded as low-end,
substandard products as many were unreliable. Over the past year
local brands started moving into the more lucrative high-end sedan
market, Jiang said.
CAAM figures also reveal a solid position held by indigenous
brands on commercial vehicle front as their market share for buses
and trucks had hovered around 95 percent for three consecutive
years.
Chinese brands held 57 percent of auto China's market when
passenger cars, sports utility vehicles and multipurpose vehicles
and commercial vehicles, were counted as a whole.
In the first quarter this year, China's auto output and sales
soared more than 20 percent to 2.19 million and 2.12 million
vehicles respectively. Monthly output in March hit a record high of
853,800 as did sales which topped 847,00 units, CAAM figures
reveal.
Looking to the future, Jiang said that technical innovations by
local auto makers should focus on gas saving and emission
reduction. Approximately 85 percent of the country's annual total
gasoline consumption and 23 percent of diesel oil consumption were
used by automobiles, he said.
"Now that China has grown to be the world's third biggest auto
maker, its indigenous industry has to face more and more
challenges, especially in energy, environment and road safety,"
Jiang said.
(Xinhua News Agency April 16, 2007)