The carmakers predict a slower increase rate in auto sales ahead for China, saying the country’s economic direction will not drive the same aggressive growth as before.
China’s auto market had a dizzying dynamics in the last decade and all carmakers made huge volumes on its auto market and profited proportionally with the never-ending growth trend. But no more, says the executive who attended to Guangzhou Auto Show, because China’s economic slowdown has made the carmakers adjust downward their projections. Nevertheless, the latest reports are indicating an increase. A couple of weeks back, the China Passenger Car Association has announced a sales boost in October by 11.3 percent to 1.85 million cars, showing the market in China is not that slow and also revealing a hefty increase over a year-ago figures.
At the Guangzhou event, Volkswagen China Executive Vice President Soh Weiming forecasted that the passenger car segment may go up by 3 to 5 percent next year. Also, Jiang Jun, president of FAW Toyota Motor Sales, said the company would not set high expectations for its dealers in 2016 to allow them to “regain strength.” Hubertus Troska, head of China for Daimler, noted the heavier discounts in the market, while Infiniti CEO Roland Krueger said growth was normalizing. “Of course it’s not as good as before, when you have those double digits but hey, with this base and with this growth, that is impressive,” Soh told reporters, adding that he estimates 2016 to be better than 2015. VW said it will introduce more SUV and minivan models to stimulate demand. Similarly to the US auto market, China has a high demand for SUVs, a segment where sales were boosted by 60,6 percent to more than 622,000 units last month.