China's auto industry will continue to grow steadily in 2007


According to the authoritative statistics of the China Association of Automobile Manufacturers, the cumulative production and sales of automobiles in China from January to November reached 6,592,400 and 6,548,800, an increase of 27.92% and 25.49% respectively. Based on this growth rate, it is a foregone conclusion that China's auto production and sales exceeded the 7 million mark in 2006. Recently, executive vice president of the China Association of Automobile Manufacturers, Jiang Lei, said in an interview with the media that China will surpass Germany to become the world’s third-largest automobile producer after leaping onto a production and sales platform of 7 million vehicles; Under the situation of rapid growth, the Chinese auto industry will continue to show a steady upward trend in 2007.

Due to the explosive growth of China's auto market in 2002 and 2003, some potential consumer demand was released ahead of schedule, which led to a sharp drop in the growth rate of the auto market in 2004 and 2005. In addition, the tightening of consumer credit led to the suppression of market demand. Jiang Lei analyzed that the annual production and sales of Chinese automobiles have jumped 5 million units in 2004 and 2005 for two consecutive years, and achieved a breakthrough of 7 million units in 2006, mainly due to the following reasons:

From the perspective of the industrial development environment, the first is that China’s macroeconomic environment continues to improve, the income levels of urban and rural residents continue to increase, and China’s current per capita car ownership is still far below the world average, which provides security and space for the growth of China’s automobile demand; The introduction of relevant policies has promoted the development of the automotive market, such as the adjustment of the automobile consumption tax collection standards and the implementation of the state's policy on the restriction of small-displacement vehicles, which has increased the consumption of vehicles with a displacement below 1.6 liters by more than 30% over the same period; It is the national energy and environmental protection policy that has played a positive role in promoting the consumption of new cars. From the perspective of the development of the industry itself, first, the company has completed the construction of expansion and reconstruction in the past two years, forming a number of new production capabilities to meet the needs of the rapid development of the market; Second, with the continuous improvement of the level of technology, automotive The market for new products has been increased, which has met the demand for market diversification. 115 new automotive products have been on the market since the beginning of this year. Third, the market share of self-owned brand cars has increased (21.5% in 2004 and the first 10 months of the year. 26.7%), gradually gaining consumer recognition with its good cost performance, expanding consumer demand in different regions and at different consumption levels.

Since the national economy will still operate with a good momentum in 2007, the state will provide support and encouragement to industries that stimulate domestic demand through consumption. The demand for Chinese cars at home and abroad will still maintain a certain scale. Jiang Lei analyzes that in 2007 China’s autos The market will be healthy and optimistic. It is expected that vehicle sales in 2007 will still be able to achieve rapid growth of around 15%. Auto companies will pay more attention to promoting development with quality, efficiency, and service. Pure price competition can no longer attract consumers.

Jiang Lei pointed out that China's accession to the WTO has been an important period for the development of China's auto industry in the past five years. The Chinese auto industry has achieved an annual leap of 7 million complete vehicles, indicating that the overall status and strength of China's auto industry has been greatly enhanced. The "Eleventh Five-Year Plan" period is an important period for the transformation of China's auto industry. The Chinese auto industry must continue to fully implement the scientific concept of development, further enhance the ability of independent innovation, vigorously develop its own branded products, meet the national energy conservation and environmental protection requirements and the needs of different levels of consumption in the society. , strive to achieve the transition from a manufacturing power to a manufacturing power.



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