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China News (September 2008) |
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New Model: Nissan X-Trail to be China made in October |
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Sold in China as imported cars for many years, the Nissan X-Trail, one of the purest Nissan
SUVs, will be locally produced in China in October, and the Chinese-made X-Trail SUV will go
on sale by the end of this year priced at 200,000 yuan ($29,300) to 250,000 yuan, reported
China News.
The Nissan X-Trail to be built in China is the second-generation X-Trail model which debuted
at the 2007 Geneva Motor Show. It is a new slightly bigger edition, now 4630 mm long,
introduced to global markets in 2007 based on the new Nissan/Renault Alliance C-platform
platform, with the much improved dimensions, chassis, and engine technology. Exterior and
interior decorations will take on a new look as well.
The China-made Nissan X-Trail SUV is likely to have three variants: the standard, luxury and Navigation versions. All of them will be equipped with the 2.5-liter four-cylinder gasoline engine
as the 2008 Nissan X-Trail made and sold in other countries.
In the Chinese market, the locally-made Nissan X-Trail SUV will have Honda CRV as its main rival, especially in the pricing. The dynamic, muscular sporty features are expected to win Nissan X-Trail many male customers in China. |
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Policy: Audi Q5 imported to China market in early 2009 |
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The long-awaited Audi Q5, a premium VW brand which made its global debut at the 2008
Beijing auto show in April, will be imported to the China market as soon as in early 2009,
and local production of this luxury sedan will follow up immediately, reported recently, citing
an Audi insider based in China.
This "import before local production" approach is similar to the business strategy of the new Mercedes-Benz C-Class sedans in the Chinese market, but this is not only for testing the waters
of the market. An executive of FAW VW's Audi sales division explained that to put the imported
Audi Q5 first onto the Chinese market early next year is to capture part of the fast-growing
market as soon as possible.
Reportedly, the local production of the Audi Q5 will follow up immediately after the imports of
this premium sedan hit the Chinese market in early 2009. The imported and China-made Audi
Q5 sedans will be equipped with different power systems and will cover different market
segments in China. The Audi Q5 will go on sale in its home market Germany at the end of
this year.
The Audi Q5 is likely to be locally made in China at the new plant that Audi has started to build
with its Chinese partner FAW in the northeastern Chinese city of Changchun. The new facility,
said to be operate in early 2010, will boost Audi's annual capacity in China to 200,000 units.
Audi aims to add at least 18 new models by 2015 to its current 22 models in China.
Audi sold 60,509 vehicles in China in the first half of this year, up 23% from one year earlier.
"These results underscore Audi's market leading position in the premium segment in China,"
Audi CEO Rupert Stadler said last month, adding that Audi's production capacities are to be
boosted in its "second home market." |
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Parts: China auto parts imports & exports grow in H1 |
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In the first half of 2008, China imported automobile components valued at $8.115 billion,
going up by a moderate 19.86%. Major import source countries are Japan, Germany, Korea,
the U.S. and France, with imports from Japan taking the lead at $3.192 billion, covering
39.33% of the total imports.
Driving system components, auto body parts and accessories, engine parts and some
unnamed components posted relatively large imports among total imported auto parts.
Driving system parts imports totaled $2.302 billion in the first half, up 21.5% year on year(y/y).
Sedan-use MT transmission imports took the lead by an increase of 3.23% y/y to 1.0224 million
units, valued at $1.571 billion, up 32.27%.
Body parts and accessories imports reached $1.882 billion in this period, up 21.5% y/y. The
unnamed components posted the largest imports valued at $1.047 billion, soaring by 32.58% y/y.
Engine parts imports reached $1.314 billion during this period, surging 27.95% y/y with highest
imports of petrol engine-use components at $860 million, up 8.01% y/y.
Auto components exports in China kept rising fast in the first half of 2008. The total exports
hit $15.374 billion, up 21.48% y/y, with America, Japan, Korea, Germany and the Netherlands
as the target countries. Exports for America amounted to $4.107 billion, making up 26.71% of
the total auto components exports.
Among auto components exports, the relatively large exports are travel system components,
auto electronic components, body parts and accessories and some unnamed auto parts.
For this period, exports of travel system components are valued at $4.056 billion, down
6.4% y/y. But the new rubber tyres used on transport or delivery vehicles present the largest
exports, with total sales at $1.852 billion, up 19.08%. Exports are mainly to America, India,
United Arab Emirates, Australia and Brazil.
Automobile electronic components exports also increased by 35.45 % to reach $3.076, and
the largest exports are of wiring harnesses which hit $997 million, up 16.13%. Target countries
and regions are Korea, America, Canada, China’s Taiwan and some others.
Body parts and accessories exports reached $2.072 billion during this period, a 52.27%
increase y/y.
The unnamed components posted the largest exports valued at $733 million, soaring by
39.92% y/y, mainly to America, Japan, Korea, Germany, China’s Hongkong and some other
countries and regions. |
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Sales: SAIC-GM-Wuling H1 mini-car sales up 16.5% y/y |
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SAIC-GM-Wuling sold more than 350,000 mini vehicles in the first half of 2008, up 16.5% year
on year.
The first-half sales of 350,000 vehicles, including nearly 330,000 Wuling brand mini-vehicles, representing 46% of the total mini vehicles sold in China from January to June and keeping
SAIC GM Wuling as the country's mini-car sales champion in the period.
SAIC GM Wuling Automobile Co., Ltd., a three-partner joint venture carmaker in Liuzhou city
of southern China's Guangxi province, is one of the leading mini vehicles manufacturers in
China. It manufactures a range of Wuling brand mini-trucks and minivans as well as the
Chevrolet Spark mini-car.
General Motors announced last week that its SAIC-GM-Wuling joint venture has begun
exporting
the Chevrolet N200 minivan from China to Peru. The N200 will be sold in Peru
through Chevrolet's local marketing and dealership network.
SAIC-GM-Wuling was established in 2002. GM China holds a 34% stake, SAIC 50.1% and
Wuling Motors 15.9%. In 2007, SAIC-GM-Wuling sold 548,945 vehicles in China, as number
one in sales among domestic mini-vehicle producers for the second straight year. |
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Parts: Chinese suppliers discard asbestos for more export |
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Chinese automotive suppliers are speeding on a non-asbestos road as they seek for more
export and the relevant mandates get harsh.
According to the China Friction & Sealing Material Association, in 2007, the asbestos-free
friction products comprised 65.5% of the total friction products, while 26.3% of the sealing
materials are asbestos-free. As China becomes the world's leading automobile market,
automakers and suppliers are speeding up to discard the asbestos-contained products.
"We started our brake pad manufacturing business in 1991. From the very beginning, we
produced semi-metallic brake pad products as our technology was introduced from North
America and we haven't produced even one single asbestos brake pad," said Wang Guangxing,
board member and assistant chief engineer of Shandong Gold Phoenix Group Corporation,
the largest manufacturer of automotive brake pads in China.
Wang said that the "LPB" branded brake pads were exported to many overseas markets.
"We offered semi-metallic products for the N. American market, Non-asbestos organic (NAO)
and ceramic ones for Japanese markets, while low-metallic ones for the European markets,"
he explained that Gold Phoenix has launched its third-generation low-metallic, NAO and
premium ceramic brake pads.
In the year 2002, many Chinese manufacturers of friction-material products invested heavily
in technological innovation or introduction before the GB12676-1999 stipulation which ban
asbestos in the brake linings came into effect on Oct.1, 2003. Now automobiles in China are
using asbestos-free brakes, except only very few of the heavy duty commercial vehicles.
Besides the braking products, asbestos was widely used in the sealing materials in the vehicles.
But now many Chinese suppliers are shifting their business.
"Construction of our new production base will be completed by the end of 2008, and the
annual production capacity will increase from the current 300 tons to 3000 tons of non-asbestos sealing materials. Also the output of non-asbestos sealing gaskets could reach 8 million sets each year," said Ye ZhaoHui, executive vice general manager of Chengdu Teamful Gasket Co, a leading sealing gasket manufacturer in China.
Ye said his company started the research and development of non-asbestos products in 2006,
and the new products have got certification from the European and American testing bodies.
"As more and more foreign countries ban asbestos products due to the asbestos contamination episodes, China's automotiv industry has begun to follow the international standartds, though asbestos could be safely used with proper protection measures," said an expert with years of
working experience in China's asbestos-mining industry, who insisted to be unnamed. |
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Sales: China's auto export growth slow down in H1 |
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Where auto plants are running at about 70 percent of their potential, said that vehicle export
growth slowed in the first half, stoking concerns about excess capacity in the world's second-
largest car market.
Exports rose 59 percent to 388,000 vehicles after almost doubling a year earlier, Fu Peizhao,
an official at the China Chamber of Commerce for the Import & Export of Machinery & Electronic Products, said recently.
Chinese car makers have boosted exports as investments totaling at least US$20 billion by
General Motors Corp, Toyota Motor Corp and other overseas makers have helped cause a
rising stockpile of unsold vehicles and falling prices in the domestic market.
First-half exports also slowed on natural disasters and because of China's attempt to cool its economy, local news reported.
"Exports are an important channel for auto makers to digest excess capacity, especially truck
makers," said Li Dan, an analyst at China Galaxy Securities Co in Beijing. "Auto makers have
expanded quickly because of the domestic sales growth."
China's exports of completed trucks rose 46 percent in the first half to 151,500, Fu said. Car
exports doubled to 133,000. The total figure also includes sales of knock-down components
and of chassis installed with engines.
The value of total exports rose 85 percent from a year earlier to US$5 billion, Fu said. The
average price per vehicle climbed 16 percent to US$12,900. The numbers include vehicles
made by overseas car makers in China.
"Tight monetary policies are making it difficult for auto makers to find capital and that led to
the decline in exports," Fu said.
Concerns about excess capacity and falling prices have caused SAIC Motor Corp, China's largest
auto maker, to plunge 70 percent this year in Shanghai trading.
Fast growth in H1 car imports
China's auto imports grew at a faster pace in the first half of this year, fueled by a stronger
yuan and a possible higher tax which helped buyers to purchase earlier.
Vehicle imports rose 53.15 percent to 212,800 units between January and June from a year
earlier, according to the China Association of Automobile Manufacturers.
The growth rate is 18.22 percentage points higher than the same period last year and also
represents three times the rate of overall passenger car sales growth.
"The robust imports came on the heels of an appreciation in the yuan that reduces the prices
of imported cars," said Xu Changming, director of the State Information Center.
The fast expanding dealer network also provided easier access for overseas car makers to
cement their presence in the world's second biggest auto market, he said.
As most of the imported vehicles were powered by big engines, other analysts also believed
that many auto buyers were eager to place their orders before the possible implementation
of a higher consumption tax, which in turn led to a jump in imports.
China has been considering capping a higher consumption tax on gas guzzlers to address environmental and energy issues. There has been speculation that the tax will be introduced
this year. Despite record oil prices, demand for sport utility vehicles has been heavy.
Imports of SUVs in the first half jumped 79.09 percent to 108,500, accounting for nearly half
of the total imports. The growth rate also represents a rise of 41.46 percentage points from
a year earlier.
"Chinese-made SUVs failed to be competitive in the high-end segment, leaving much room for
growth to those made by overseas car makers," Xu added.
The value of total imports rose 39.6 percent to US$16.3 billion from a year earlier, according to
CAAM in a separate report. |
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| China Sales |
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PDF file |
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China Monthly Vehicle Sales - Passenger Car Sales (May 2008) |
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China Monthly Vehicle Sales - Bus and Truck Sales (May 2008) |
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ASEAN Autobiz Magazine
Grandprix International Co., Ltd.
Copyright 2007-2008 All Rights Reserved |
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