As markets in first-tier cities slow in the wake of policies to ease environmental and traffic impacts, first-time buyers in lower-tier cities will be the major force driving the automobile industry's future growth, said a joint report released last week by research company Nielsen Holdings NV and the China Association of Automobile Manufacturers.
A growing number of residents in major mainland cities think the domestic cars are becoming better, but more buyers still intend to purchase a foreign brand, according to a survey conducted in May.
Recent thunderstorms in Beijing reminded people of one of the most serious downpours the city for six decades.
The lack of liquidity at domestic banks is making it harder to get a car loan in Beijing, but that is likely to have minimal impact on the mostly cash market.
BMW Brilliance aims to triple its 2012 sales to achieve even greater success in the next decade, said the joint venture's top executive at a ceremony to mark its 10th anniversary.
Following the lead of Beijing, Shanghai, Guangzhou and Guiyang, a city near Beijing will become the fifth in China to restrict the purchase of vehicles for private use.
Over the past three decades, "consolidation" has been a buzzword in the Chinese auto industry.
BAIC Group, the Chinese partner of Daimler AG and Hyundai Motor Co, plans to acquire one or two domestic automakers this year, according to the company's senior management.
Though Mercedes-Benz has recovered from the disappointing sales figures it saw in 2012, Nicholas Speeks, the new president and CEO of the company's China operations, is still not satisfied.
Volkswagen's joint venture with SAIC Motor Corp recently launched the Gran Lavida in South China's Hainan province.
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