Guo Dongle: The Strategy for Domestic

　　Editor's Note: On August 14, 2010, the Seventh Conference for Heads of Chinese Automotive Marketing Business-Lhasa Summit was held in the city of Lhasa in Tibet. The summit was organized by China Marketing Association, Sohu Auto and Advertising and Economic Information Center of China Central Television. Following is the speech given by Guo Dongle, the Vice President and Secretary General of China Marketing Association.

　　Distinguished leaders, experts, marketing executives, good morning!

　　First of all, on behalf of China Marketing Association, I would like to offer warm welcomes and heartfelt thanks to all the distinguished guests who attend the Seventh Conference for Heads of Chinese Automotive Marketing Business-Lhasa Summit.

　　In the year of 2009, China's automobile production and sales embraced a booming period. In the first half of 2010, China's auto market still maintained the strong growth. According to the statistics of China Association of Automobile Manufacturers, in the first half of 2010, Chinese domestic auto production totaled up to 8,927,300 units with an increase of 49%. The automotive sales reached 9,016,200 units, up by 48% year on year.

　　At the same time, we should notice that currently there are some new conditions and changes in the auto market. Due to the influence of the booming market in 2009, the capacity of auto industry got expanded. However, since the momentum cannot be sustained, now the sales of vehicles are gradually declining following the booming market in the first of half in 2010.

　　Since it is difficult to complete the goal which was set at the beginning of 2010, a number of automakers began to lower the expectations of sales. BYD announced that it reduced the expectations for production and sales in 2010 to 600,000 units from 800,000 units, down by 25%. It seems that China's domestic auto market has started a new round of adjustment. Many believed that the auto market would face downturns. What are the uncertainties which will influence the trend of automobile market in the second half of 2010? Faced with several kinds of pressures related to inventory, capacity and capital, what changes will take place in the domestic automobile market? Now Chinese auto market is busy expanding marketing channels, what changes will occur regarding the marketing model and system of Chinese automakers?

　　At the same time, the new conditions and changes in auto market propel us to further think about the development of Chinese auto market in a post-crisis period. What does Chinese auto market need? Expansion or stable and rapid growth? Particularly, since the financial crisis, nearly all the major auto markets and manufacturers across the world have suffered from setbacks. Therefore all the major auto markets and manufacturers attach great importance to Chinese market. Some even believe that China is the main market which may bring recovery. Therefore we can expect that in the future the competition will become very fierce. In such a competitive environment, Chinese automobile manufacturers including dealerships should think about how to enhance their unique competitive advantages. They can grow stronger to create a well-known brand with domestic and international competitiveness.

　　Today we can talk freely on this issue and share ideas. We are looking forward to hearing from experts, academics and marketing executives. We also believe that faced with unprecedented opportunities and challenges in China's auto market, all of you have the pride and wisdom to conquer a higher mountain. We hope that this summit could make some contributions to your career. Finally, we wish the Seventh Conference for Heads of Chinese Automotive Marketing Business-Lhasa Summit a great success. We hope that everyone could have a beautiful and memorable time in Lhasa. Thank you! (Translator: Qinghua/Hanxin)

　　See Original Chinese Report Please Clicks:

　　http://auto.sohu.com/20100814/n274206086.shtml