Car market this year tends to grow wholly

　　Both producers and dealers are very positive about this year's performance of Chinese car market therefore they raised their full-year production and sales targets.

　　How about the development direction of Chinese car market in 2010 and whether the car prices will increase or decline? Yesterday reporters visited part of the car dealers and found stimulated by favorable policies issued by Chinese government last year, producers and dealers all think highly of Dongguan car market. It is commonly thought that Dongguan car market will continue to grow at a speed of 1% to 3%. As a result, producers and dealers raised their overall year targets, some even as high as 1.5 times while plan to launch a variety of new vehicles to seize the Dongguan car market share. When it comes to sensitive car prices, some car dealers predicted prices will keep stable in the first half and prices maybe decline impacted by the weak market performance in the second half of this year.

　　Car market this year maybe continue to grow wholly

　　“According to the development momentum of the second half of last year, car market of this year probably continues to grow wholly”, said Huang Shaoyue, market manager of Dongguan HeBao Automobile Sales & Service Co., Ltd. Thanks to improvement of national economy and powerful stimulation by favorable policies, some hesitated car buyers are supposed to be willing to purchase cars under such good circumstance. He also predicted car sales volume of Dongguan car market could increase by 30%. Dongguan Meidong market manager Cao Chunli believed that there was a fierce competition in luxury car market. With the abundance of product line the competition would be further intensified. However, it can still achieve 10% -15% of the growth. “If the market environment continues to improve, the luxury car market would not fluctuate drastically, conservative estimate is it will remain stable and grow smoothly”, said Feng Shaokun, market manager of Dongguan Renfu Star Automobile Sales & Service Co., Ltd.

　　Dealers are very positive about this year's medium-class, high-end and luxury car market development trend. Will it impact the market space of the economy cars? Although the sales of economy cars declined 20% compared with 2008 under the effects of economic environment in the first of half of 2009, but in the second half of 2009 its sales rebounded. Given the economic situation is in a warmer period with Chinese government’s strong support for China’s own auto brands, economy cars probably grow wholly. Some dealers said the new wave of purchasing cars maybe occur before Spring Festival and in the middle of this year.

　　Producers and dealers continuously raised full-year targets

　　Stimulated by the good market environment, some dealers have raised full-year targets. "Last year we sold 14500 units Dongfeng Nissan and this year we plan to achieve 10%-15% of the sales increase. That is, whole year car sales are expected to reach 15000 units. Although it is not difficult to accomplish the task, however, the key is the source of cars may be more tense, for example Sylphy and Teana are out of stock and the phenomena is supposed to relieve until March 2009”, said Zhaodan, market manager of Dongfeng Southern Trading Co., Ltd. Market director of Dongguan Yonghao Automobile Sales & Service Co., Ltd. Ye Zhengda pointed out after auto manufacturers raised full-year sales targets, sales task of dealers will be raised at the same time. Last year they sold about 1000 units Dongfeng Yueda KIA, but this year the sales figure will be raised to about 1200 units. Huang Shaoyue who main in charge of BMW sales said that BMW would also raise full-year sales targets appropriately.

　　Whether manufacturers or dealers their full-year targets of this year are all higher than last year. It is said that sales targets of some dealers are 1.5 times than last year. They predicted an increase of up to 50%.

　　A variety of new models will be launched this year

　　To seize this year's auto market share, manufacturers have also announced massive new vehicles listing plans. Early in January of this year, BMW 5-Series GT has been officially listed as the first new model of this year in Dongguan. BMW 5-Series GT is a new generation of sport-utility vehicle and is mainly designed for home car owners. As for luxury cars, Lexus will also launch several new models whose displacement is below 3.0 liters within this year. Dongguan Renfu Star disclosed that this year there will be a lot of new Mercedes-Benz listed in car market. Models of Mercedes-Benz will also be further subdivided, such as small redesigned Mercedes-Benz models will be launched in car market.

　　The reporters learned from the DFS that it will launch three new models this year including introduce a low-emission environmentally friendly vehicle. Dongguan Yonghao said that Dongfeng Yueda will launch new Optima around August or September this year in Dongguan. "Our agent GONOW van began to sell in Dongguan until last year. Its appearance looks good and the price is less than 30 thousand RMB, so its sales performance is satisfying. He Xianqiang revealed that Lifan will also launch two jeeps this year.

　　Prices jump at first and finally drop due to an increase of indefinite factors

　　Although there is still some time away from the Spring Festival, but the competition in Dongguan car market has began intensifying. Among them domestic brands also assume "pioneer." Following the price of BYD F6 wealth edition recently was reduced 10 thousand RMB, similar models of China’s own auto brands are also planned to reduce prices. Does this mean that the car prices of the year will loosen or decline? "This is mainly determined by the market", said Zhao Dan, marketing manager of Dongfeng Southern Trading Co., Ltd. From this month's sales trend of Dongfeng, sales figure has reached 1000 units in the first 18 days and it is estimated that monthly sales figure can reach 1600 units. Therefore, car prices in the first quarter will not change much and even keep stable in the first half of this year.

　　Market director of Dongguan Yonghao Automobile Sales & Service Co., Ltd. Ye Zhengda thought after the increase of car purchase tax, some consumers have bought cars early in the late of 2009. Thus the car prices will remain stable during the first half of this year. Many new vehicles are supposed to be launched this year, so it is likely to further subdivide customers flow and narrow single-brand car’s consumer market. Nevertheless, with manufacturers expanding production capacity to resolve supply tight, car dealers could reignite the "price war" so as to accomplish full-year target which could lead to the decline of car prices again. (Translator: Qinghua Wade)

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　　http://auto.sohu.com/20100119/n269677645.shtml