SUPPLEMENT TO APRIL 14, 2008 © 2008 Crain Communications. All rights reserved. autonews.com 2008 Guide to China’s Auto Market Global automakers’ joint ventures • Domestic Chinese automakers Vehicle production and sales data • Map of production facilities in China 2008 GUIDE TO CHINA’S AUTO MARKET 3 As economy booms, consumers Contents snap up SUVs and luxury cars n the West, higher fuel prices are prompting drivers to log fewer miles and embrace smaller, energy-efficient 4 vehicles. INot so in China, where wealth generated 2007 sales by the booming national economy has by brand more than offset rising fuel prices. In 2007, 5.2 million passenger vehicles were sold in China, up 21 percent from 2006, according to Automotive Resources 6 Asia, a unit of J.D. Power and Associates. Global Gasoline-gulping SUVs enjoyed the automakers/ strongest growth, up 50 percent. Auto prices across China dropped in joint ventures 2007 by an average of 5.7 percent, accord- ing to the China Automotive Industry Association. Meanwhile, per capita in- 19 come of urban residents increased 12.2 percent from 2006, to $1,942. Map of The Chinese government maintains production some controls on fuel prices. The most ROGER HART facilities in widely used grade of gasoline was raised 8 percent in November to the equivalent of CHINA’S RIP-ROARING NATIONAL ECONOMY IS FUELING A GROWING AUTO INDUSTRY THAT HAS SPAWNED EVENTS SUCH AS THE SHANGHAI AUTO SHOW, ABOVE. China $2.77 per gallon. Meanwhile, the government repeatedly By contrast, Hyundai group’s sales vol- has said the domestic auto industry is fac- ume tumbled 16.5 percent last year. SALES ON THE RISE 20 ing excess capacity. But automakers aren’t In 2007, Volkswagen was still the clear Segment sales of light responding to the pressure. leader in China. Supported by its two joint vehicles in China in 2007 Domestic Almost all automakers are ramping up ventures — Shanghai Volkswagen Auto- 2007 % CHANGE production and developing new models. motive Co. and FAW-Volkswagen Auto- SALES FROM automakers 2006 In 2007, about 200 passenger-vehicle motive Co. — VW held a market share of Microcar models were sold in China, double the 17.5 percent. It was followed by General 329,000 0 30 number in 2005. The number will rise to Motors with 10.1 percent. Subcompact 250 in 2008, according to the forecasting Last year, the industry started what many OEM suppliers 1.3 million 4.0 firm CSM Worldwide. expect will be a significant wave of consoli- Compact in China Meanwhile, some cash-rich nonauto- dation among state-owned automakers. In 1.9 million 31.0 motive domestic companies want to enter December, Shanghai Automotive Industry Mid-sized the market. In 2007, motorcycle maker Corp. acquired Nanjing Automobile Group 947,000 29.0 Chongqing Loncin Holdings said it would Corp. Online Luxury form a joint venture with the British com- The Chinese auto industry is so compet- 209,000 35.0 Download this guide pany Antonov to manufacture small auto- itive that various automakers, such as SUV in pdf format at matic transmissions for passenger vehi- Chery Automobile Co. and Chongqing 357,000 50.0 cles in China. The move was widely seen Lifan Industry Group, see overseas mar- www.autonews.com Small as Loncin’s latest attempt to transform kets as their best opportunity to grow. /chinaguide multipurpose itself into an automaker. They are quickly building their presence in vehicle 59,000 16.0 Thanks to stellar performances of new other developing markets, such as the Multipurpose Data in this publication were models, domestic Chinese brands and Middle East, North Africa and Russia. provided by Automotive vehicle 173,000 22.0 Resources Asia Ltd. Japanese brands gained ground in 2007, Some Chinese automakers — including Source: Automotive Resources 1106 Q House Building largely at the expense of Korean brands. Geely Automobile Holdings Ltd., Brilliance Asia Sukhumvit Soi 21 Asoke Bangkok, Thailand 10110. The combined market share of Chinese Jinbei Automobile Co. and BYD Auto Co. www.auto-resources-asia.com. brands increased 2.3 percentage points — have displayed products at auto shows Note: Sales data reflect while that of Japanese brands rose 1.1 per- in the United States and Europe. But it is vehicles produced in China centage points. Meanwhile, Korean brands widely thought that they still have a long unless noted. lost 3.1 percentage points. way to go to succeed in Western markets, Cover photo: Sports car Toyota closed the year with sales up where quality and engine emissions stan- specialist Spyker Cars more than 60 percent over 2006. The dards are much more rigorous than in attracts a crowd to its stand at an auto show in China. Camry alone contributed more than half China. • Photo by Patrick Firouzian of the new volume. — Yang Jian 2008 GUIDE TO CHINA’S AUTO MARKET Automotive News • J.D. Power and Associates • Automotive Resources Asia AN AUTONEWS 04-14-08 D 4 AUTONEWS 4/9/2008 3:19 PM Page 1 4 BRAND SALES The Volkswagen group remained the top automaker in China in 2007, ranked by brand sales of passenger vehicles. General Motors held the second spot, but the Toyota group is gaining ground quickly. CHINA PASSENGER VEHICLE BRAND SALES Global brands: 2007 2006 % chng. Domestic brands: 2007 2006 % chng. Volkswagen group 946,433 775,039 22.1 Chery 369,459 302,478 22.1 Audi 92,200 77,192 19.4 Zhejiang Geely group 219,513 205,123 7.0 Skoda 31,802 – – Geely 184,176 176,320 4.5 Volkswagen 822,431 697,847 17.9 Maple 35,337 28,803 22.7 General Motors group 527,915 446,706 18.2 Xiali 182,271 199,323 –8.6 Buick 331,780 300,700 10.3 Haima 130,988 80,218 63.3 Cadillac 4,384 547 701.5 Chevrolet 191,751 145,459 31.8 Jinbei group 129,666 73,059 77.5 Jinbei 15,349 10,062 52.5 Toyota group 455,038 280,424 62.3 Zhonghua 114,317 62,997 81.5 Toyota 452,912 280,424 61.5 Daihatsu 2,126 – – BYD 94,683 60,116 57.5 Honda 422,341 323,469 30.6 Great Wall 64,732 40,062 61.6 Hyundai group 343,210 411,154 –16.5 Changan 55,515 17,974 208.9 Hyundai 243,881 296,154 –17.7 JAC 48,114 34,363 40.0 Kia 99,329 115,000 –13.6 Hafei 44,799 65,391 –31.5 Nissan 281,520 211,337 33.2 Lifan 30,101 7,365 308.7 PSA Peugeot Citroen group 207,255 201,318 2.9 FAW Car Co. 27,953 9,402 197.3 Citroen 115,036 120,039 –4.2 Changfeng 25,758 24,688 4.3 Peugeot 92,219 81,279 13.5 Dongfeng 22,341 18,818 18.7 Ford Motor group 180,476 134,385 34.3 Ford 174,085 131,061 32.8 Roewe 16,549 – – Volvo 6,391 3,324 92.3 Jiangling 16,323 14,070 16.0 Suzuki 161,066 159,547 1.0 Zhongxing 10,771 8,716 23.6 Mazda 89,838 47,211 90.3 Changhe 7,295 18,400 –60.4 Mitsubishi 67,236 54,222 24.0 Soueast 6,254 14,356 –56.4 BMW 32,249 23,735 35.9 Beiqi 5,566 2,822 97.2 Ssangyong 14,472 6,648 117.7 MG Mingjue 3,131 – – Fiat 13,484 30,668 –56.0 Foton 1,717 1,152 49.0 Chrysler group 9,277 6,801 36.4 Chrysler 8,959 2,188 309.5 Note: Reflects sales of locally produced passenger vehicles (cars, SUVs and MPVs); does not include Jeep 318 4,613 –93.1 minivehicles, pickups or commercial vehicles; does not include sales of import vehicles Daimler (Mercedes) 6,882 5,508 24.9 Source: J.D. Power and Associates, Automotive Resources Asia 2008 GUIDE TO CHINA’S AUTO MARKET Automotive News • J.D. Power and Associates • Automotive Resources Asia 6 GLOBAL AUTOMAKERS/JOINT VENTURES BMW AG Beijing Representative Office JV: BMW Brilliance Automotive Ltd. 28/F, Tower B, Gateway Plaza No. 14, Shanzuizi Road, Dadong District, Shenyang City Chaoyang District, Beijing 100027, P.R. China Liaoning Province 110044, P.R. China (86) 10-8455-8000, www.bmw.com.cn (86) 24-8455-6000, www.bmw-brilliance.cn Top executive: Alfred Rupp, president Top executive: Christoph Stark, president & CEO Luxury cars in China are hot, and BMW AG Imports grew impressively. China remained wants to take full advantage of the trend. the second-largest market for the imported In the first half of 2008, BMW plans to raise 7 series last year by selling 10,688 units, up 42 its capacity in China to 44,000 units percent from 2006. The Mini more than annually. doubled sales in the Chinese mainland. Sales of luxury vehicles rose 35 percent in BMW will introduce the 1 series to China, China in 2007. Alfred Rupp, president of BMW’s joint BMW, including Mini, sold 51,588 cars in venture in China, said in a recent interview. the Chinese mainland last year, up 42 He also mentioned BMW would continue to percent from 2006. Those figures include look into the rapidly growing SUV market. imports, says the company. BMW says its long-term strategy is to MINI But to catch the luxury leader — Audi — produce more cars locally in China. Last year, BMW has a long way to go. The top-selling Sales of the locally produced 5 series and 3 the automaker’s local purchasing volume rose luxury car — the Audi A6, with sales of 72,638 series by its joint venture, BMW Brilliance 80 percent to 3.6 billion yuan ($501 million).