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Competition of China's Economy Car Market to Be More Fierce

With a new model of domestically-made economy saloon appearing in the market Tuesday, the already fierce competition in China's auto market is getting hotter and hotter.
 
Tianjing First Auto Works or FAW Automobile Group has launched a new three-door car, the Vela, this week. It costs between US$10 and 13 thousand. Just hitting the market, its reasonable price and good performance have attracted many auto buyers. Insiders say it's arrival will trigger a new round of competition in the already crowded car market.

Surveys show among the various homemade saloons, the economy car with a price ranging from US$10 to 12 thousand is the Chinese buyers favorite. Many domestic and joint venture automobile manufacturers are trying hard to get a bigger slice of this delicious cake.

Guo Yong, a director of Beijing's Asian Games Village Auto Trade Market, the city's largest, says most of the cars sold last year from this market were around US$10 thousand. The market for economy saloons was already cut-throat even before the vela's joining the fray.

"With the launching of many new cars as well as the price-cutting of some existing brands, our sales mainly come from the family sedan at less than US$10 thousand. The competition between manufacturers and dealers is becoming stiffer."

So will so much competition bring more benefits for auto buyers? What will decide their final decision when choosing a domestically-made car?

"Now we have more choices on economy cars. For me, the price and safety are the top priorities. Energy efficiency is also important."

It is reported that the economy saloon is the mainstay of the American and European auto markets. Insiders say the domestic family saloon market is still in the ealry phase and will become more competitive in future.

(CRI March 10, 2004)

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