Auto Sales in China Is Expected to Explode in 2010

May 6, 2010 - PRLog -- www.shcri.com - As China’s economic development promotes the upgrading of consumption, cars have become the daily necessities of ordinary people instead of exclusive luxury goods to the high-income group. Due to the financial crisis, the economic growth of global major economies including China slows down obviously. However, in China, the sustaining growth of the demand potential in the auto industry displays the growingly prominent role of this industry in the national economy. In 2009, China realized the auto sales volume of over 13 million, becoming the global largest new vehicle market for the first time. The role of the auto industry as the pillar of the national economy is unanimously recognized by Chinese governments at all levels. This lays a favorable policy foundation for the sustainable development of Chinese auto market in the future.

However, the situation of the auto market differs in different regions of China. On one hand, large gaps exist in the economic development levels of different regions. For example, in 2009, the GDP per capita was over USD 11,000 in Shanghai, almost ten times the USD 1,300 in Guizhou. On the other hand, the geography, climate and history culture also vary from region to region. The local unique culture features will be demonstrated more prominently in the auto markets of small and medium cities yet there are numerous small and medium cities in China; the scale of a single market is relatively small and the difference in culture & economy will be large. Thus, the auto distribution industry has to establish channel models and marketing modes in accordance with the situation of the markets.

The auto markets in Chinese first-tier cities (Shanghai, Beijing, etc.) are similar to that of developed countries (USA, Europe, Japan, etc.) in the limited market growth space. The rigid demand in Chinese auto market comes from those urban families that have not purchased cars. These families mainly concentrate in small and medium cities. It is forecast that the auto purchase demand in Chinese small and medium cities will be fully released in the coming years. The effective channel models and marketing modes in Shanghai, Beijing and Shenzhen, etc will be adopted by hundreds of small and medium cities, and even over 2,000 counties in China. However, there will be the problem of inapplicability then. Thus, in the following years, one core problem to be solved for the competition of the auto distribution industry is how to establish the applicable sales and marketing systems in those high-speed developing auto markets of Chinese small and medium cities.  
   
With the continuous development of the marketing philosophy and the gradual maturing of Chinese auto market and consumer psychology, the competition on the whole vehicle sales market will be more intense and the profit growth of the whole vehicle sales well be extremely limited. With the sustaining growth of Chinese income per capita and the rapid growth of personnel car purchase, Chinese auto purchasers will pay more attention to services instead of products. In the future, service will become a major aspect for Chinese auto distributors to establish competition advantages. Besides the necessary services for sales and after-sales repair, value-added services (auto leasing, auto maintenance, auto replacement and quick service chain) will achieve fast development.      

Through this report, readers can acquire more information:
-Status quo of Chinese auto distribution industry
-Development environment of Chinese auto distribution industry
-Competition on Chinese auto distribution market
-Financing channels in Chinese auto distribution industry
-Major auto sales models in China
-Prediction on development of Chinese auto distribution industry
-Investment opportunities in Chinese auto distribution industry
-Contacts of major auto distributors in China

Following persons are recommended to buy this report:
-Auto distributors
-Auto manufacturers
-Auto leasing enterprises
-Auto maintenance enterprises
-Investors concerning the auto distribution industry
-Research institutes concerning the auto distribution industry
-Persons concerning the auto industry chain


To get more details, please visit http://www.shcri.com/reportdetail.asp?id=433
   

Contacts:
www.shcri.com
Eileen@shcri.com
Tel: 86-21-6150-9706

# # #

The primary and secondary research was conducted by consultants in China who know the industry and the local markets well.