China's auto sector boosted by circulation industry
- Source: CE.cn
- [08:58 August 31 2010]
- Comments
In recent years, the steady and fast growth of the national economy and the continue improvement of the people's living standard make auto market the important market of mass consumption gradually, and also provide solid market conditions and driving forces for the development of automobile industry.
While making great strides forward because of benefiting from the dual effect of the industry development and the market demand, China automobile circulation industry as the connector of the development and the consumption of the automobile industry plays a positive role in promoting the growth of the automobile industry and the rise of the market demand.
Development environment is better and better.
With the increment of residents'income and the continuous declining of automobile price, automobile is no longer the symbol of identity and status and its functionality as a means of transport gradually returns.
Automobile consumption is being popular gradually and becomes the hot spot of consumption among common people. While, with the progress of China's urbanization process, the proportion of passenger cars gradually increases and its contribution to the growth of the automobile sales is growing.
Although influenced by the international financial crisis in 2009, China's macro economy still maintained a good momentum of development and GDP per capita has been more than $3,600.
According to international practice, if GDP per capita is over $3,000, car consumption will enter a period of high growth. This means that China automobile market is still the market with great growth potential in the future period.
Meanwhile, various encouragement policies, having played an important role in promoting the growth of automobile consumption in 2009, has been adjusted and continued in 2010, in addition, some new policy measures are issued unceasingly.
It is believed that stable development will still dominate China's automobile market in 2010. There are many signs to show that the development environment of China's automobile circulation industry is better and better.
Automotive enterprises actively tap secondary & tertiary markets
The rapid growth of China automobile market in 2009 is not a normalcy. In 2009, the reasons of promoting the rapid growth of China automobile market were complex.
From the fundamental point of view, the reasons lie in the huge rigid demand of auto purchasing and the secondary & tertiary markets with unlimited potential as well as the favorable driving effect of policies. However, this kind of rapid growth does not happen frequently.
The auto sales data of the first six months of 2010 also shows that the automobile market is returning into steady growth.
With the growth focus of automobile market transferring to the secondary & tertiary markets, many auto enterprises have emphasized their channel development to the secondary & tertiary markets.
In order to grab greater automobile market share, those joint ventures that have been busy exploring Chinese auto market start to expand their channels and networks and pay more attention to the secondary & tertiary markets.
