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China AutomobileSurvey of Automobile Industry Development 2008 Published：2009-05-25 Origin：National Development Portal In 2008, global financial crisis hastened the economic recession worldwide and the economic situation of China also underwent big changes. Under the impacts of a series of factors including macro-regulation, extraordinarily serious natural disasters, disappearance of wealth effect in stock market and implementation of national emission standards III, the production and sales of automobiles in China shown the tendency of “going down” and the momentum of high-speed growth in recent years was finished. The growth rate of economic benefits of the industry obviously slowed down and the increase of export was considerably restricted. The production and sales of automobiles of China reached 9.3451mn and 9.3605mn respectively in 2008, up by 5.21% and 6.70% respectively year-on-year, while the growth rate of production and sales dropped by 16.81% and 15.14% respectively year-on-year, which was the first time for the annual growth rates below than 10% since 1999. The production and sales of passenger vehicles totaled 6.7377mn and 6.7556mn respectively, up by 5.59% and 7.27% respectively year-on-year, with the growth rate down by 16.35% and 14.41% respectively year-on-year. Though the growth rates fell rapidly, the percentages of production and sales of passenger vehicles maintained a stable growth, accounting for 72.10% and 72.02% of the total production and sales of automobiles respectively, a rise of 0.26% and 0.39% respectively. Compared with passenger vehicles, commercial vehicles were in downturn since the second half of the year. The production and sales of commercial vehicles totaled 2.6074mn and 2.6249mn, up by 4.24% and 5.25% respectively year-on-year, which were lower than those of the industry by 0.97% and 1.45%. The growth rate fell by 17.97% and 17.00% respectively. The percentages of production and sales of commercial vehicles accounted for 27.90% and 27.98% of the total production and sales of automobiles respectively, a slighter lower than those in 2007. Sedans, trucks and cross passenger cars ranked Top 3 in aspect of sales. The sales of the above-mentioned vehicles totaled 5.0469mn, 1.6406mn and 1.0636mn respectively in 2008, accounting for 53.80%, 17.49% and 11.34% of the total automobile sales respectively, with the rise of percentage by 0.04%, 0.24% and 0.10% respectively. With respect to the growth contribution rate of major types of automobiles, the production and sales of passenger vehicles remained at the top to 77.08% and 77.77% respectively, a growth of 5.455% and 6.57% respectively year-on-year, while those of commercial vehicles dropped. By different types of vehicles, the growth contribution rates of production and sales of basic passenger vehicles (sedans) remained at the top to 51.80% and 54.39% respectively, a drop of 6.12% and 2.61% respectively year-on-year. The growth contribution rates of production and sales of trucks, cross passenger vehicles and SUV were higher than those in 2007. The growth contribution rates of production and sales of passenger cars and tractor-trucks were comparatively low, with certain drop compared with those in 2007. The growth contribution rates of production and sales of MPV and incomplete trucks and passenger cars were negative, a worse performance. The sales of sedans with self-owned brands amounted to 1.3082mn in 2008, accounting for 25.92% of the total sales of sedans, a drop of 0.43% year-on-year concerning market share. Among foreign brands, Japanese brands had relatively good performances and the sales of vehicles reaches 1.556mn, accounting for 30.83% of the total sales of sedans with the market share increasing by 1.92% year-on-year. The sales of German and South Korean brands increased to 1.0265mn and 361,700 respectively, accounting for 20.34% and 7.17% of the total sales of sedans respectively, with the market share growing by 0.38% and 1.25% respectively. The sales of the US and French brands fell slightly to 615,300 and 178,100, accounting for 12.19% and 3.53% of the total sales of sedans, with the market share dropping by 1.96% and 0.85%. From Jan. to Nov. 2008, the growth rate of profits of industrial enterprises of China decreased obviously, and the industrial enterprises above the designated scale gained profits of RMB2.4066tn, up by 4.9% year-on-year with the growth rate dropping by 31.8% year-on-year. In the situation where the profit growth rate of the industrial sector as a whole slowed down, the profit growth rate of the automobile industry also jumped. From Jan. to Nov, the profits of the automobile industry amounted to RMB123.9bn, up by 8.74% year-on-year, with the growth rate dropping by 56% year-on-year. With regard to export, the export of complete vehicles was largely affected by international environment in 2008. In the first half of the year, the fast growth trend was maintained as a whole, while since the third quarter, the growth rate obviously fell, particularly, the year-on-year drop of every month for consecutive five months since Aug. quickened the trend of fall of export growth rate on year-on-year basis in 2008. By the end of 2008, the export of automobiles totaled 680,700, up by 11.10% year-on-year, with the growth rate falling by 67.85% year-on-year. The amount of export reached USD9.633bn, up by 31.75%, with the growth rate falling by 101.44% year-on-year. With regard to import, 410,100 automobiles were imported in 2008, up by 30.53% year-on-year. The accumulative amount of import reached USD15.128bn, up by 41.65% year-on-year with the same growth rate of the previous year. As far as the import of automobiles was considered, the situation in the first half of the year was relatively good, while import slowed down since July. After the fourth quarter, the import grew month by month, better than export at the same time. The Survey of Foreign Investment in China's Automobile Industry in 2007 Published：2008-11-20 Origin：MOFCOM According to the statistics of MOFCOM, 842 foreign investment projects in Automobile industry (Automobile Industry (Code C372) hereinafter is in accordance with the National Economic Industrial Classification (GB/T4754-2202）.) were newly set up in 2007, 122 less than that of the same period in the last year, and the amount of the actual utilized foreign capital reached USD 1800950,000, down by 16.03％ year-on-year. The number of newly established foreign invested enterprises and the amount of the actual utilized foreign capital accounted for 2.22％and 2.41％ of the national total number or amount of foreign capital absorption in the Automobile industry during the same period.
According to the source of foreign capital, calculated by the amount of the actual utilized foreign capital, in 2007, countries or regions: Hong Kong, Japan, Korea Rep, Br. Virgin Is, United States ranked No.1 to No. 5 in the automobile industry regarding the amount of FDI, accounting for 19.04%, 15.84%, 15.45%, 9.01%, 8.56% of the total amount of the actual utilized foreign capital of the industry separately.
Figure 1 Main Source of FDI of the automobile Industry 2007
In automobile industry in 2007, ten Asian countries/regions (Hong Kong, Macau, Taiwan, Japan, Philippines, Thailand, Malaysia, Singapore, Indonesia and Korea) newly set up 556 enterprises in China, with the actual utilized foreign capital of USD 1011460,000, down by 11.04％ and down by 25.87％ separately year-on-year. The number of the newly established enterprises and the actual utilized foreign capital accounted for 66.03％ and 56.16％ of the national total number or amount of foreign capital absorption in the same period.
The EU newly set up 83 enterprises in China, 83 more than that of the same period last year; the actual utilized foreign capital reached USD 223180,000, down by 15.04％ year-on-year. The number of the newly established enterprises and the amount of the actual utilized capital accounted for 9.86％ and 12.39％ of the national total number or amount of foreign capital absorption in the same period.
The US newly set up 82 enterprises in China, down by 24.07％ year-on-year; the actual utilized foreign capital reached USD 154150,000, up by 20.17％ year-on-year. The number of the newly established enterprises and the amount of the actual utilized capital accounted for 9.74％ and 8.56％ of the national total number or amount of foreign capital absorption in the same period.
According to regional foreign capital absorption, 697 foreign-invested automobile enterprises were newly set up in the Eastern area, with actual utilized foreign capital of USD 1608420,000, accounting for 82.78% and 89.31% of the national total number or amount of foreign capital absorption in the same period. In the Eastern area, Jiangsu Province, Guangdong Province and Shanghai ranked among the tops with respect to actual utilized foreign capital, had 191, 77 and 47 newly established foreign-invested enterprises separately, with the actual utilized foreign capital of USD 449300,000, USD 244600,000 and USD 239210,000, accounting for 24.95%, 13.58% and 13.28% of the total amount of the actual utilized capital of the industry in the Eastern area separately.
118 foreign-invested automobile enterprises were newly set up in the Central region, with actual utilized foreign capital of USD 124740,000, accounting for 14.01% and 6.93% of the national total number or amount of foreign capital absorption in the same period. In the Central region, Hubei Province, Anhui Province and Jiangxi Province ranked among the tops with respect to actual utilized foreign capital, had 17, 33 and 20 newly established foreign-invested enterprises separately, with the actual utilized foreign capital of USD 48730,000, USD 29820,000 and USD 16820,000, accounting for 2.71%, 1.66% and 0.93% of the total amount of the actual utilized capital of the industry in the Central region separately.
27 foreign-invested automobile enterprises were newly set up in the Western area, with actual utilized foreign capital of USD 67790,000, accounting for 3.21% and 3.76% of the national total number or amount of foreign capital absorption in the same period. Chongqing, Guangxi Zhuang Autonomous Region and Shaanxi Province ranked among the tops with respect to actual utilized foreign capital, with the actual utilized foreign capital of USD 38980,000, USD 12390,000 and USD 9300,000, accounting for 2.16%, 0.69% and 0.52% of the total amount of the actual utilized capital of the industry in the Western area separately, Among them, Chongqing and Guangxi Zhuang Autonomous Region had 12 and 5 newly established foreign-invested enterprises separately.
Figure 2 Regional Foreign Investment Distribution (by Regional FDI Inflow) of the automobile Industry 2007
According to utilizing manners of the foreign capital, in 2007, there were 253 Chinese-foreign equity joint venture projects, 579 wholly foreign-invested projects, 9 Chinese-foreign contractual joint venture projects, which newly established in the automobile industry. in 2007, in the automobile industry, the amount of the actual utilized foreign capital in the Chinese-foreign equity joint venture projects reached USD607210,000; in the wholly foreign-invested projects reached USD1180410,000; in the Chinese-foreign contractual joint venture projects reached USD13330,000. The Commitments to the WTO and the International Practices of the Automotive Industry Published：2002-11-17 Origin：MOFTEC
Under the commitments of China's accession to the WTO, as set forth in the Protocol and its annexes as well as in the Working Paper Report, China, after accession, will gradually liberalize the domestic automotive market with respect to such fields as tariff, non-tariff, investment and trade in services. (2).the initial quota value of imported automobiles in 2002 is US$6000 million. The quota growth rate is 15% per year. On 1 January 2005, all import licenses and quotas will be eliminated. 2. Investment Measures (2).Amendments to ensure lifting all measures applicable to motor vehicle producers restricting the categories, types or models of vehicles permitted for production (to be completely removed two years after accession). (3).Raising the limit within which investments in motor vehicle manufacturing could be approved at the provincial government level, from the current level of US$30 million, to US$60 million one year after accession, US$90 million two years after accession, and US$150 million four years after accession. (4).With respect to the manufacture of motor vehicle engines, removing the 50 per cent foreign equity limit for joint?ventures upon accession. 3. Trade in Services Related to Automobiles 2006 Global Automobile Industry Survey Published：2007-04-20 Origin：By Expert U.S. Been affected by the high price of global oil, the three American magnates: General Motor, Ford, and DaimlerChrysler Group, are all indicate that corporations have been trying to develop more energy-economized automobiles to adapt to high oil price. In the low-price oil ages, Americans were in favor of big and powerful cars. Such oil-consuming cars were also the strong points of General Motor, Ford and DaimlerChrysler Group. However, with the increasing high price oil, Americans are inclined to buy more energy-economized and small cars. That is the reason why Japanese cars are hot. As a result, the sales of General Motor, Ford, and DaimlerChrysler Group were dropped by double-digital in June, 2006; Ford even was in the edge of bankruptcy. Relatively, referring to the sales data released by American automobile data company, American Associated Press reported the ten top sale cars in 2006. Although Pickup Truck of Ford F series made by Ford Corporation ranked the first place with 796 thousand annual sales, its sales was dropped by 11.7% compared with the last year. The next one is Silverado Pickup Truck produced by American Chevrolet Corporation with 636 thousand annual sales. Its sales were decreased by 9.9% compared with the last year. The third and fourth are Japanese cars: Camry (with 448 annual sales) and Corolla (with 387 annual sales). And Camry is the only saloon car in the first three tops, keeping ahead over other saloon cars, which obviously shows its popularity in America. Germany Germany Automobile Industry Association declared recently in Frankfurt that the exported amount of Germany automobile was up to 3.9 million in 2006, which is a new record after three years’ continuous growth. Germany car export amount in 2006 was 170 billion Euros with 8% growth, taking account of 17% of total export amount. Calculated by Germany Automobile Industry Association, 20% Germany export cars were enter America market, and 60% were accepted by Western Europe. The import and export trade surplus of Germany in 2006 was 100 billion Euros. U.K. U.K. Automobile Manufacture Trade Association released that Car overall sales were dropped because of increasing living cost and decreasing car buyer. The new requirement of automobile was taken by the basic living expenditure and tax. In addition, the inflation in U.K. was high in 2006. All the factors led to a high deposit reserve, which brought on a much higher liability. As estimated, the total car sale amount of U.K. was 2344864 in 2006 with 3.9% drop. Automobile Manufacture Trade Association expected that the car sale will remain weary because consumers all run on the bank, and few policies were made to encourage car consumption. Compared with Dec. 2005, the car sale was 133810 in Dec. 2006 with 14.7% drop. However, Automobile Manufacture Trade Association said the entire car sale was pulled by sale of diesel engine saloon car, as well as the change of tax rate. Sale of diesel engine saloon car was up to 898521 with 0.1% growth, India On the premise that the average growth of global automobile market is only 1％～1.5％, from 2006 to 2012, Chinese automobile market growth will maintain more than 15%, and Indian market growth will be up to 10% in the same term. In addition to the potential car consumption brought by the huge population in India, in the eyes of foreign capital car magnates, Chinese market is a visible sea, but Indian market is a mystery and potential sea with Asian and Global manufacture orientation and the domestic consumption potential. Automobile investments were rushed into India. In Nov. 2006, two multinational magnates declared that they will invest billions US dollar to establish a huge scale car manufacture base. Renault Automobile reported in 10th Nov that an understanding Memo was signed between Renault Automobile corporations and famous Indian automobile manufacturer Mahindra Corporation. The memo indicates that Renault will invest billions US dollars to set up a complete-car manufacture company and engine company. The original produce capacity will be 300 thousand, and the first type is Dacia Logan Car of Renault. Germany Volkswagen AG. stated in 28th Nov. 2006 that it was planning to invest 530 million US dollar to set up Automobile Manufacturer in India. The new company would be built around Maharashtra in India. It was planned to be put in use in the second half year of 2009. Investments made by Volkswagen AG. And Renault was only miniature of rushing investment. This year, the investments from main global automobile enterprises once again surged into India cosmically. In 3rd June, The president and CEO of Honda Automobile Corporation Takeo Fukui announced in Indian capital New Delhi, that the corporation scheduled to invest 650 million US dollar into India to Series car patter including Fit. In 25th June, Italian Fiat Automobile Corporation announced with Indian Tata Automobile Corporation that two sides arranged to establish joint venture enterprise in India to produce cars, engines, and other key car components for Indian market and other markets. In early August of 2006, General Motor Corporation announced that it would invest 0.3 billion US dollar in India to establish Automobile Corporation, mainly producing minitype saloon car. In 2005, General Automobile sale amount in India was 30800.President of General Automobile Corporation expressed that it would take account of 10% of India market. In 22nd August, Toyota Automobile Company declared to invest in India market. It didn’t release any specific investment sum and steps; however, it planned to take 15% of India new car market. It was said the market share of Toyota in India market was 4% in 2005 with 41000 car sales. Except that new incomer, Hyundai, Ford, Mitsubishi Automobile Corporation had established companies in India in several years ago. And there were a number of multinational enterprises producing car components entered India automobile market after complete-car manufacturer. The huge market capacity was just like the market of China in ten years ago. The 2005-2006 fiscal year shows the annual revenue of Indian automobile industry was 45 billion US dollar, annual export amount was 4.5 billion US dollar, and their employers were 250000. Japan In 2006, Toyota, Hyundai and other Asian automobile manufacturer encountered with credit crisis in the high speed development period. In the past two years, Toyota had maintained an aggressive growth momentum. Its sale amount pressed hard on that of General Automobile. However, it plunged into an unprecedented credit crisis on the high rope. The crisis began in April 2006. Because there were disfigurement in front transmission shaft and brake power booster, Toyota recalled 9 types’ automobiles including 73000 microbuses and more than 3000 ambulances. And the recall was never stopped. In May, Toyota recalled twice in Japan. One was for quality hidden trouble, it recalled 10 land cruisers SUV; the other one is for deficiency of steering wheel middle shaft, it recalled 560000 cars including 9 types automobiles such as Corolla、Vios、Prius. In June, Toyota recalled 418500 cars including 12 types’ cars around the world, including some mixed engine cars Prius sold in America for the reason of quality deficiency of one component in engine. More worse, in 11th June 2006, the police of Kumamoto Town in Japan proclaimed a judicial investigation to 3 senior directors in Toyota Automobile, suspecting the 3 directors disguise car deficiency. Thought Toyota Corporation declared that there were no illegal action in reporting products’ deficiency and recalling; it was condemned by Japanese government and citizens. |
