The Chinese auto industry: the transition to quality development

The Chinese auto industry: the transition to quality development


China’s auto industry has entered a crucial period of restructuring, In this context, the local brands need to transform to adapt to the latest trends of the industry, the organizers of the three-day Chinese Autoforum 2020, which has just completed its work in Shanghai.

The forum, which was held for 9 years, is a major event in the local automotive industry and an important platform for government officials, experts and scholars and representatives of automotive companies, are willing to discuss the future development of the industry.

The transition to qualitative development

The main organizer of the event, the China Association of automobile manufacturers CAAM said that 2020 is for the automotive industry of China year of transition to quality development. Since 2009, China is the world’s largest car market in terms of production and sales. In addition, it has become an important market for local and foreign automakers.

In this speech about what all goes on smoothly, is not. The Chinese automobile market for the first time recorded negative growth in 2018 and in 2019 even car sales have declined further. Automakers from China needs to transform itself and develop new strategies to solve problems. Association of CAAM, said that the spread of the coronavirus worldwide has added to the uncertainty in world politics and economy. In a changing environment China’s auto industry will face many major problems, and the automakers must be ready for it.

In this regard, the Chinese government promulgated a series of policies to stimulate consumption vehicles. And the automakers, in turn, are actively promoting new cars, increasing the level of their technology and maintaining the stability of industrial and logistics chains.

Expected minus ten percent

As experts predict CAAM, in the second half of 2020 the market will see further recovery lost due to the pandemic of positions, and he has all the chances to finish the year is not as weak as it was observed in the spring, when the world was raging coronavirus. Professionals CAAM expect further improvement in car sales in the second half of the year, however, overall, the Chinese market is likely to see a 10% drop in 2020.

For 7 months 2020 total vehicle sales in China fell by 12.7 per cent to 12.37 million units, which was associated with macro-economic challenges and weak consumer confidence against the background of the pandemic coronavirus, says the Association. In CAAM added that slide can go up to about 20%, if there is a second wave of coronavirus infection. In 2019, reminiscent of the Association, total sales in the country fell by 8.2% to 25,77 million units.


Last month, according to CAAM, Chinese car sales rose 16.7% yoy to 2.11 mn units, and this is the fourth consecutive month when the growth is fixed. July plus followed by an increase of 11.6% in June and increase by 14.5% in may. These results indicate that the market is recovering quickly in a favorable policy of the Central and local authorities, as well as the return of consumer confidence.

“Merchants” in the price

Among the July sales total realization of the directly automobile (passenger) vehicles reached 1.67 million units is 8.5% more than in the same month last year. The record showed the sector of commercial vehicles: sales reached the level of 447 thousand units., which is a whopping 59.4 per cent more than in 2019.

The forum announced and data on vehicles using alternative energy sources. For example, sales of electric cars in China grew this year by 24.2 % year – on-year to 79 000 units And the implementation of plug-in hybrids went to plus 2.7% to 19 thousand units In July, was commissioned in about 7800 new charging stations across the country (+26,8% yoy). According to the Association, to date, China has registered a total of 566 000 elektronaradim pillars.

“CAAM hopes that local authorities will contribute to the increase of car sales in the second half of 2020. In turn, the automakers recommended to adjust the pace of production and operation, to promote the stable development of the industry”, – stated in the message of the China Association of automobile manufacturers.

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