One of the major topics in 2011 and 2012 for vehicle makers in China was the era of ‘slow growth’. Manufacturers had grown used to a decade of 30% year on year growth but that stopped in 2011 with the onset of the global economy which led to slower export sales but was also partly influenced by rising inflation in China and rising worker salaries as the labor pool grows smaller.
Total production of cars in 2012 reached 19.27 million whilst sales were at 19.30 million, an increase of 4.63% and 4.33% respectively. Passenger vehicles stood for just over 15.52 million and 15.49 million sales, an increase of 7.17% and 7.07%. Commercial Vehicles sales were down year on year with production reaching 3.74 million and sales 3.81 million, a decrease of 4.71% and 5.49% respectively.
The pace of growth is still higher than 2011′s 2.5%, which shows there is some elasticity remaining in the market.
Over 10.76 million passenger cars, including sedans and hatchbacks, were produced whilst 10.74 million were sold in 2012, an icnrease of 6.22% and 6.15%, 491,900 MPV’s were produced and 493,400 were sold, a decrease of 2.84% and 0.87%, SUV’s remained the bright side of the market with production reached 1.99 million and sales breaching 2 million, an increase of 24.67% and 0.87%. Fork lift trucks are also included in the official stats, with 2.26 million being production a 2.25 million being sold, an increase of 1.20% and a decline of 0.07%.
Despite the slow growth in the Chinese market it is still seen as the best investment option according to a KPMG report released yesterday. The report follows a survey of 200 automotive executives whom gave their thoughts on the current status of the market and concluded that the country still has significant demand and export opportunities to be chased.
Chinese vehicle exports reached just over 1.06 million in 2012 and are expected to be strong again in 2013 with the renewed economic activity in key markets such as the Middle east and South America.