Optimistic experts tackle major challenges head on

By Du Xiaoying | China Daily | Updated: 2015-06-15 07:10

Editor's Note: The China Council for the Promotion of International Trade and auto industry representatives shared their insights at the Global Automotive Forum, held from June 9 to 10 in Chongqing, Du Xiaoying reports.

"Twenty percent or even a third of Chinese automakers will be eliminated by 2020. Auto companies with the inability to innovate and who develop technologies slowly will be left out.

A new round of mergers and reorganizations among Chinese automakers will definitely accelerate. Ranking among the industry's top enterprises may also change by 2020."

Xu Heyi, chairman of BAIC Group

"The Chinese auto industry is at a critical point in its growth. The growth rate will continue below 3 percent, even hitting zero or negative growth. A decline in sales growth, overcapacity, tough competition, decline in efficiency and growing inventories as well as the increasing number of cities adhering to policies of auto purchase quotas are all to blame for the auto market contraction."

Liu Weidong, vice-general manager of Dongfeng Motor Corp

"The Global Automotive Forum 2015 chose 'Mega Change: Reshaping an Industry' as the forum's topic. Conforming to the changing times, innovatively building the automotive business model and a sound value chain will be the keys to success in the present and in the future. There exist both opportunities and challenges."

Wang Xia, chairman of the Automotive Committee of the China Council for the Promotion of International Trade

"If we have a brief look at China, under the theme of the 'new normal', growth rates in the Chinese auto market are expected to slightly decline. But clearly, growth rates of 5 to 6 percent for the total market and 10 percent for the premium market would be considered extremely healthy anywhere in the world. Mirroring the global trend, the premium market in China is expected to grow faster than the overall market and make up for 9 percent of the total market-fully in line with the global average."