market of cars in China

The sales of vehicles automobile in China increased by 15 % last year, exceeding expectations by reaching nearly of the 22 million sold units, with about 18 million passenger cars, the Chinese association car manufacturers announced on Thursday.

China strengthened is position of market leader

China confirmed in 2013 its status of first automobile market to the world, a place which was acquired in 2012. In the Middle Kingdom, the sales any confused vehicles increased by 14 % last year to 22 million units, a growth which exceeded expectations, announced on Thursday the Chinese Association of the car manufacturers. For the only passenger cars and SUV (except commercial vehicles), sales progressed of 16 % to reach 18 million units sold.

The latter amounts, which integrates a 18 % jump of the registrations in December, is clearly upper to the forecasts of the association, which banked initially on a 7 % progress only of the market after two years of low growth.

What are the positions of the French manufacturers in China? After many disappointments, PSA has three production units to Wuhan by means of its joint venture with the Chinese manufacturer Dongfeng today. The production capacity, which is about 600.000 cars a year, should be increased to 750.000 in 2015.

The market of second-hand is still emerging

Still embryonic, the market of the second-hand car should explode in China in the years which come, following the sales of new vehicles, and the foreign builders already position to make sure a share of the cake.

In China, we count approximately a second-hand vehicle sold for three new, what little by report of the other regions, in particular in the United States where on the contrary there are 27 second-hand vehicles for new 10.

The reason of this delay is simple: the take-off of the Chinese market goes back up only in a decade and at the moment the Chinese who reach the automobile favor the new. 65 % of them are always first-buyers.

http://www.lesechos.fr/09/01/2014/lesechos.fr/0203231651589_la-chine-premier-marche-auto-mondial-en-2013.htm

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Automotive market China are going to Africa

The Chinese groups always suffer from a deficit of image compared with their main rivals, Korean Kia and Hyundai, which cavort at the top of sales both in the Maghreb (with French Renault and Peugeot) and in the South of Sahara (with Japanese Toyota and Nissan). Hyundai sells 150 000 cars on the continent, it is near 7 times more than Great Wall.

African market are not fully open to China's brands

In their offensive on Africa, the Chinese brands are supported by their government. «Just after the crisis, China made present of 50 sedans Great Wall to the Ivory Coast government. A very beneficial operation for our image ", the managing director of Rimco in Ivory Coast recognizes. Since then, the public companies and the administration represent not less than 40 % of the turnover of this one. " And when the Chinese companies become established in Ivory Coast, they provide themselves naturally at our home(naturally with us) ", the distributor congratulates himself, who so sells vehicles Great Wall to Sinohydro, the manufacturer of the dam of Soubré ( Ivory Coast).

To make progress their market shares, the manufacturers of the Middle Kingdom implant assembly plants, in particular in North Africa and in Southern Africa, where the sold volumes are the most important. Great Wall Motors and Chery already assemble cars in Egypt, market considered attractive because of its pond of population of 80 million inhabitants. First Automobile Works announced industrial projects in South Africa and in Cameroon. Great Wall studies other possibilities of factories in Senegal and in South Africa. These installations - which content with assembling rooms come from China - do not represent colossal investments.

Other work for the Chinese brands, the improvement of their system of distribution thanks to agreements with the biggest actors of the continent. The group CAD-CAM, leading in French-speaking Africa, distribute Great Wall in Morocco, whereas the number two of the market, Tartaric Motors, represents Chery and JAC Motors in several countries via its subsidiary Tiger Motors. But both are little pressed to knot agreements with other Chinese actors and to widen their existing partnerships somewhere else. The subject is sensitive: for a question of image, the Japanese and western brands, which they also distribute, do not want to be sold in the same concessions. CAD-CAM comes besides being acquired by Toyota Tsusho Corporation.

JX Paulin

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