China imported 103,200 vehicles in the first quarter this year, up 74.54 percent year on year, according to statistics from the China Association of Automobile Manufacturers (CAAM).
Specifically, imports of luxury auto brands like Lexus, Mercedes-Benz, BMW, Volkswagen, Volvo and the latecomer Infiniti, grew a sharp 82 percent in the first quarter.
Statistics indicate a total of 28,534 off-road vehicles with 3.0-liter engines or above, with an average unit price of $40,900, were imported in the first quarter, soaring 262.57 percent compared with same period in the previous year.
Meanwhile, the country also imported 16,624 cars with 3.0-liter engines or above during the period, up 75.28 percent year on year. The average unit price reached a higher $57,900.
By contrast, China exported 179,000 vehicles in the first quarter, fewer than 199,000 units in the fourth quarter of 2007, signaling a slowdown in auto export.
The main reason behind the soaring imports is that auto importers gathered up on importing vehicles before a system of national inspection of vehicle identification number (VIN) codes for automobile imports was carried out as of April 1 this year, said Xu Di, director of marketing department at China Automobile Trading Co Ltd.
"Buying imported vehicles as a second option is a growing trend among affluent people," Xu said.
Xu predicted growth of auto imports would decelerate in the second quarter as tight monetary policy and drop of China's stock market wealth.
A Guangzhou-based Audi dealership witnessed a 230 percent year-on-year sales growth in the first quarter. Huang Weiwen, marketing director of the distributor, pointed out the luxury car market is slightly affected by economic depression and high-end consumers' consumption temptation is also not very seriously impacted by the gloomy stock and property markets.
For export, experts attributed the quarter-on-quarter decline to the yuan appreciation that has resulted in higher export costs and lower price competitiveness for made-in-China vehicles.
Statistics indicate China exported 38,777 cars with displacements between 1 and 1.5 liters in the first quarter, accounting for nearly 40 percent of total vehicle exports. Exports of cars between 1.5 and 2.5 liters reached 21,630 units during the period, up 64.54 percent year on year.
Enjoying higher prices on small-displacement vehicles in overseas markets, domestic automakers like Chery, Geely and Brilliance Auto have set ambitious targets for tapping overseas markets.
(Chinadaily.com.cn May 8, 2008)
