8 Keywords review China's auto market

Waiting, speculating, surprising, satisfying, we have gone through 2009. At the beginning of the year, numbers of car owner-to-bes, who repress the desire to purchase vehicle, suspect the probable downturn in the auto market. But they find out surprisingly, the "blowout" is appeared in the automobile market again with the help of different kinds of government's incentive policies.

It is the time to ring out the old year and to ring in the new year. The "prophets", who were confused by the expression of blowout in 2009, has prophesied again how the auto industry will increase in 2010. The Spring Festival is nearing, the automobile market has gradually the atmosphere of Spring Festival. The steps to farewell the old year is accelerating. Let us see a few key words to review the spectacular year of 2009, and to prospect the expectations for 2010.

　　Top 1 The world's first 13 million units

In 2009, China's automobile output has reached 13 million units. China overtakes the United States and Japan as the number one nation of auto production and the largest auto market. 2009 is the veritable "blowout" year of production and sale in the history of Chinese automobile industry.

　　Top 2 Policy drives away the financial crisis

The reform of Fuel oil tax, the revival and adjustment plan for auto industry, half auto purchase tax, car subsidy program for rural areas, the policy of replacing old cars with new, and so on, are the major motivators to promote the growth of auto production and sales. According to Huang Yongyue, the chief expert of China Automotive Technology & Research Center (CATARC), the country's stimulus package and the policy to promote consume have effectively boosted the confidence of consumers, and also play the decisive role to recover the automotive market rapidly.

　　Top 3 The "giant" has become the legend

The largest American car maker - General Motor filed for official bankruptcy protection on June 1. The new GM receives 30.1 billion USD fund financed by U.S. Government. Fortunately, Shanghai GM and SAIC General Motor Wuling (SGMW) in China, two manufacturers of whole vehicle, haven't been affected.

　　Top 4 Merger and acquisition are the trend

Eight auto companies have gone through merger and acquisition in 2009. Guangqi Group and Changfeng Group have held a signing ceremony to transfer the stock shares. Two state-owned enterprises, Chana Auto and Aviation Industry Corporation of China (AVIC) merge and restructure together. The sale of Opel has ups and downs. In February, GM announced to sell the brand of Opel and then terminated the sale in November. In these nine months, Opel walks back and forth, and finally is embraced by GM again. Another thing is the Beiqi's acquisition of Saab. After long.term efforts, Volkswagen finally purchase Porsche. Volkswagen and Suzuki declare a low-key consolidation. Geely's acquisition of Volvo has eventually clear sound. Of course, don't forget the most high-profile incident that Sichuan Tengzhong acquired Hummer at the beginning of the year.

　　Top 5 Grab every opportunity in auto shows

The auto shows of domestic and Fujian's vehicle market make manufacturers joyful.

In order to grab every opportunity to sale more vehicles, to participate auto shows becomes naturally the places that auto makers focus promoting their own "magic tools". From Shanghai auto show in April to Chengdu auto show, then Guangdong auto show, and finally Changsha auto show, manufacturers have invested a lot of efforts on each of these auto shows. Because of the auto sale boom, different from the focus on the "presentation" in the past several auto shows, the manufacturers put the focus on the car sales.

　　Top 6 New energy vehicle come into life

Adjustment and Vitalization Plan for Auto Industry was published in March this year. The plan points out the specific planning goal to achieve "the production capability of 500,000 units of new energy vehicles, whose sales will take up 5% of the total sales of passenger cars" and the major tasks to "promote the industrialization of pure electric vehicles, plug-in hybrids and its key components". Thereafter, some companies propose working on the new energy vehicle's project. Several auto manufacturers also showcase high-profile their own new energy concept autos.

　　Top 7 The post-80s generation loves auto credit

Under the background that Chinese auto market becomes gradually mature, the auto finance companies have also been developing rapidly. Auto credit is accepted by young people, especially for the post-80s generation, which make the auto finance companies develop even faster. Although the proportion of the domestic automobile credit has already improved, the rate of the sales of whole vehicle achieved by consume credit remains still very low. The domestic consumers' car purchase by loan takes up only 6.6% - 7.0%. But in Europe, the United States, Japan and other companies, whose automotive industries are relatively mature, the rate of car loan has reached 60% - 80%.

　　Top 8 Vehicle recall is also a responsibility

Different with the terror as soon as hearing the word of "recall" in the past, more and more vehicle companies begin using recall as a method to fulfill the corporation responsibility. Up to October of this year, the recall system, the auto recall as representative, has been put into practice in China for five years. During these five years, the total amount of recalled defective vehicles is 3.066 millions. The recall system has brought the Chinese market lots of changes, including government, corporation and consumers.(Jianfei Keke)

　　See original Chinese report Please click