NewswireToday - /newswire/ -
Delhi, New Delhi, India, 2006/12/08 - Automobile industry is driving China towards success. The country’s automobile sector is proliferating at an incredible pace, showering profits.
In the next few years, both domestic and foreign automobile brands will compete for the top position in China. The automobile consumption in China is soaring high. The industry recorded a year-on-year profit growth of 63.87% to reach 22.004 Billion Yuan during the first 8 months of 2006. This magnificent growth completely outpaced the sales revenue growth of only 29.87%.
China Association of Automobile Manufacturers, in their recently released figures shows that the profits of the industry declined that it experienced in 2004. As per the industry experts, the exigence comes with the upsurge in domestic demand of automobiles and reduction in the steel prices.
The market share of domestic cars is increasing in China. In Guangzhou, Shanghai and Beijing, domestically manufactured Chery-cars account for 5% of the total market share.
The out of control prices of housing, especially in downtown locations, have further ignited the car sales, as people need to commute long distances from their suburban homes. Trading of commercial vehicles abroad has also nourished the industry. Truck exports from January to August 2006 jumped by 52.2% to reach the level of 95600 units. The total cost of these vehicles amounts to US$ 604 Million. The export of passenger vehicles stood at 14400 units worth US$ 296 Million.
As per a Research Analyst’s view at RNCOS, who has recently researched a report on “Asian Automotive Industry (2007)”, domestic automobile market will see a more fierce competition in the next 2 to 3 years. The Chinese automobile industry will continue to tread the same path of success in the future.
The research report also discusses some facts and interesting issues relevant to the global business environment, like:
- An insight into market performance trends
- Factors driving growth and changes
- Key Challenges and strategies
- Competitive scenario and market leaders
- Growth opportunities in the market
- Future outlook
The report also focuses on the Asian Automobile market and its growth with respect to the western world.
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