Demand for Chinese cars makes exports surge

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Chinese car brands may not have landed in the West, but they are encircling mature markets in developing countries where the demand for low cost cars is at an all time high, of course Chinese car manufacturers have been wise to step in to fill the demand.

Markets such as Brazil, Chile, Egypt and Turkey have been major overseas recipitants of Chinese automotive purchases over the past six months and automotive exports may surge to 800,000 units in 2011, a 15% increase over China’s best export year in 2008. Exports over the first half of the year increased by 57 months over the same time period in 2010, whilst the domestic market increased by just 3.2%.

Both Chinese and Joint Venture Companies expanded capacity at a rapid rate during 2008 to 2010 to fulfill demand from the local market in China, but as demand has dropped due to surging gasoline prices, anti car policies in various cities and the rising of sales tax on popular small cars Chinese manufacturers are looking to offset the fall in demand at home with increased export figures.