China’s Auto Market Reaches Peak in 2009

For the automobile industry, the year of 2009 is bound to be an extraordinary year. Against the backdrop of the financial crisis, the auto industry not only undergone great pains, but also ushered in a great opportunity.

Century-old GM downed to bankrupt protection. The most profitable Toyota is experiencing losses. Owing to devaluation of Korea won, Hyundai made fortune overseas… In a chaos in the global car market, China is enjoying the boom that only belongs to him.

The author uses 10 phrases to sum up the specialty and changes of China’s automobile market in 2009, that is policy market, structure transfer, reorganization, acquisition wave, low emission, new energy, second and third line, low-priced cars, going to China and going abroad.

　　Unusual 2009

According to the accumulated vehicle sales from January to November this year (12.23 million), it is expected that sales in full-year 2009 will reach 13.5 million, increasing by more than 40%, and will set the record in history. Increment of more than 4 million in the whole year is unprecedented in the history of the world’s cars.

Seen from the development during the past 10 years, China’s car market has 3-4 years of cyclical. Basically, 3-4 years is a cyclical period of time for automobile company to research and develop. A company also takes this period of time to establish since the decision to invest to the fund of the factory. During the cyclical time, sales downed to very low point last year, while this year it should reached the peak of growth, which inevitably will trigger a new round of expansion investment and research and development investment.

China is definitely an eye catcher in the global. U.S. auto sales fell more than 600 million units (nearly 40% drops), compared with normal years, the world's No. 1 status is replaced by China. Other automotive powerhouses are not better than the United States. Accumulated sales from January to November shows that cars sales in Japan Spain, United, Kingdom, Italy Australia respectively fell by 11.8%, 20.8%, 8.85%,1.4%, 9.3%. On the contrary, emerging market, Brazil increased by 8.4%. With the spur of policy, German auto market surged by 25%, but experts worried that next year will drop significantly. In the first half of year, car sales in Russia even plummeted by 49%. (Translator: Qinghua/Sailor)

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