Site Search

Top News

Year in review: China's ascent to top of global auto market

(China Daily)
Updated: 2010-04-24 06:52
Large Medium Small

Marching south

Year in review: China's ascent to top of global auto market

Volkswagen Group, the top overseas passenger car maker in China, unveiled an aggressive plan to expand in south China last November during the Guangzhou auto show in a move to grab greater market share in the region where Japanese brands have long dominated.

The German carmaker aims at a three-fold increase in south China sales to more than half a million units by 2018.

The group, together with its two Chinese joint ventures Shanghai Volkswagen and FAW Volkswagen, will launch more of new products in the region and expand dealer networks in a bid to further improve customer satisfaction.

Volkswagen's south China strategy covers Guangdong, Zhejiang, Jiangxi, Fujian and Hainan and Guangxi. The entire region generates roughly a third of China's GDP.

In 2009, south China only comprised only 12 percent of Volkswagen's overall sales in the country, much less than the 20 percent in both the nation's north and east.

Volkswagen reportedly plans to build two assembly plants with billions of yuan in south China with its two joint ventures to catch its Japanese rivals. Japan's top three carmakers Toyota, Nissan and Honda have large-scale plants in Guangdong.

In the first quarter of this year, Volkswagen held grand ceremonies in Guangzhou to launch its China-made products, the Tiguan SUV and Golf GTI sports car. US carmaker General Motors also has a significant market share in south China.

New way for M&A

Year in review: China's ascent to top of global auto market

Beijing Automotive Industry Holding Corp (BAIC), the partner of Daimler and Hyundai Motor, last December agreed to buy part of assets of General Motors' Swedish unit Saab for just $200 million in a bid to develop its own-brand cars.

The assets include two Saab models - the 9-5 and 9-3 and powertrain technology and tooling, but not the Saab brand. SAIC Chairman Xu Heyi described the deal as "very worthy".

BAIC's move may be a new economical way for Chinese automakers to get most-wanted foreign assets, instead of buying an entire foreign carmaker, to develop their own brand cars.

In 2004, China's largest auto group SAIC Motor paid $500 million for a 49 percent stake of South Korea SUV maker Ssangyong Motors. However, the Korean company went bankrupt in January last year, making SAIC's investment a total write-off.

Xu said BAIC plans to spend 33 billion yuan over the next three years to develop three to four passenger models under its own nameplate as well as three turbocharged engines based on the acquired Saab assets. The company is also building a 150,000-unit plant in Beijing for its own-brand cars.

Schedule
Press Preview: April 23 - April 24
Industry Preview: April 25 - April 26
Public Show: April 27 - May 2
Auto Components and Parts: April 23 - April 27

Venue for Passenger Cars and
Commercial Vehicles:
The New China International Exhibition  Center
at Tianzhu

Venue for Auto Components and Parts:
The China International Exhibition
Center at Jing'anzhuang

Gallery Guide:
Your map to where the world's top auto brands
are making their marque.

New Models

Luxury cars are presented at Beijing Auto Show.

A PorscheBoxster Spyderdisplayed at the 2010 Beijing Auto Show.

more
Concept Cars

A Cadillac Converj concept car is displayed at Auto China 2010 in Beijing. Cadillac is one of GM Group's sub-brands.

A GAIC Everus concept car displayed at Auto China 2010 in Beijing.

more
Copyright 1995 - 2010 . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.