Comments on: China car sales slowing down?

By: Jim Corty

Jim Corty — Tue, 13 May 2008 00:58:19 +0000

Got news for the boys in dark drab green in Beijing…
We’re finally getting the picture here in the U.S. heartland, we don’t need to keep up with the Jones’ anymore. It’s now cool to save money instead of buying that new LCD television (like our parents did). Our consumer cooling here in the U.S. will send clear message to our trading partners that we don’t need to buy everything you make (good and bad quality). FYI; There is over a Billion barrels of oil in North Dakota and twice that much off the coast(s) of: Florida, California, Alaska, Washington and Oregon. Rumor has it there is a large undeclared pool of crude and natural gas under the Eastern slope of Colorado and New Mexico. Bottom line is when the Iranians decide to pull the NUKE trigger the Israeli’s will help them complete their suicide mission. End of problem.

By: M0L0TOV

M0L0TOV — Mon, 12 May 2008 07:08:18 +0000

MOLTOV? Can I call you Ashree? Just kidding…. I think the whole world is slowing down economically (besides the Middle East). I guess a similar parallel is, when people save, they consume less, when there’s less consumption, factories close down or less services are offered, people save more(sort of a self fulfilling prophecy per se)and the economy does worse (Japan was/is a perfect example of this). The United States and China have a symbiotic relationship, before it was Taiwan (I won’t get into the politics), now it’s PRC, although China is a powerhouse, both countries depend on each other. Didn’t the Chinese government also put tighter controls on credit in China as well?

By: joninchina

joninchina — Mon, 12 May 2008 04:16:48 +0000

Since the world economic market is so integrated now, it makes sense that we would see some “slowing down” of the auto market - MOST countries (western countries that is) would still drool at the possibility of a DOUBLE DIGIT annual growth in the auto market. Let’s remember that the chinese auto market is STILL GROWING - just not at a runaway pace anymore. Here’s a thought - it seems that this year there was a LOT of new SMALL cars introduced (new QQ2 and QQ5, Geely Panda, GW Peri, BYD F1, Geely CE, the new Chery Faira models and others)…..and most all of these will sell for 50,000rmb OR LESS. Perhaps this is the next thing for the chinese auto industry - affordable cars for a MUCH larger segment of the general population. Interesting statistic (these are 2006 numbers) - for every 1000 people in China, only 24 own cars (in America it’s 700 for every 1000 people, the world average is 120 for every 1000). With the world economy in a “flux” state right now, small cars in China might just become the new “hot” segment of the auto industry. Lower fuel consumption, easier to park, lower in taxes and insurance……let’s give it a year (maybe 2) and see what sales stats will be like for mini/small vs. medium/large cars in China.

By: Ash

Ash — Mon, 12 May 2008 03:29:59 +0000

MOLTOV,

I think most of the ‘new money’ in common hands these days thats being spent on cars is from investments such as the stock market, or government bonds both of which did very well in the past few years but have slowed down recently!

By: Ash

Ash — Mon, 12 May 2008 03:27:56 +0000

Even I’ve noticed on a few occasions that 100rmb in the supermarket doesnt buy you what it used to be able to! 100rmb is barely two days worth of groceries now!

By: M0L0TOV

M0L0TOV — Mon, 12 May 2008 03:02:44 +0000

Could the slowing of car buying have to do with the credit crunch in China? http://seekingalpha.com/article/70799-chinese-credit-crunch-could-end-commodities-run

By: Slade

Slade — Mon, 12 May 2008 01:14:13 +0000

Well, I gotta say that the people around me are feeling poorer with the rapidly rising food and housing costs in this part of the country. Friends have said those exact words, “I feel poorer”.