AutoGuide News Blog
The AutoGuide News Blog is your source for breaking stories from the auto industry. Delivering news immediately, the AutoGuide Blog is constantly updated with the latest information, photos and video from manufacturers, auto shows, the aftermarket and professional racing.
For the first time in at least 14 years, China’s auto sales growth trailed America’s after China’s government ended stimulus measures and their economic expansion started plateauing.
Total vehicle sales in China rose 2.5-percent to 18.5-million, compared with the 3-percent median estimate from five analysts surveyed by Bloomberg. Even though the country remains the world’s biggest vehicle market for the third straight year, its delivery growth slowed from the 32-percent in 2010.
China’s auto sales growth won’t reach anywhere near the past couple of years as it scales back to a more sustainable pace,” said Jenny Gu, an analyst at industry researcher LMC Automotive in Shanghai. “The past few years were boosted by government incentives.”
Passenger-car deliveries rose 5.2-percent, a drastic decrease from the 33-percent growth seen in 2010. Sales growth in China had outpaced the US every year prior to 2011 according to data stretching back to 1998. US light-vehicle sales climbed 10-percent in 2011.
It’s estimated that growth in passenger-vehicle demand in China will accelerate this year to about 9.5-percent with vehicle exports projected to rise 25- to 30-percent to as much as 1.1-million units.
General Motors was happy to report that their sales in China during November rose at its fastest pace all year, thanks to deliveries of Wuling light trucks and Buick Excelle sedans. Deliveries to dealers in China last month rose 20-percent (to 237,130) compared to a year ago.
After cutting prices on Wuling light trucks, sales of mini-commercial vehicles and sedans at SAIC-GM-Wuling Automobile Co. jumped 40-percent. GM now has their sight set on passing Toyota in global annual sales. While this was great news for GM, Ford and Honda are both reporting a decline in deliveries last month in China.
Ford’s sales in China fell 7-percent in November to 43,338 units with a 19-percent decline in deliveries at its joint commercial-vehicle venture. Honda on the other hand, sold 58,228 vehicles in China last month which is still 3.3-percent fewer than a year earlier. Overall deliveries decreased by 8.4-percent over the course of this year.
It’s worth noting that overall demand in China has decreased in 2011 compared to 2010, when auto sales surged 32-percent to 18.06 million vehicles. Still, GM is relying on the vastly large Chinese market to offset the continually shrinking European market.
[Source: Automotive News]
Earlier this week both the United Kingdom and China signed business deals reported to be worth around 2.6 billion pounds ($4 billion). A part of those deals included arrangements to sell more Jaguar and Land Rover vehicles in China.
Jaguar Land Rover, which is currently a unit of the Indian conglomerate Tata Corp, has committed to sell around 40,000 vehicles in the world’s largest auto market, in a deal alone worth 1 billion pounds ($1.53 billion).
The deals were signed after a visit to Britain by China’s vice premier Li Keqiang. Other large deals were also announced following the VP’s visits to Spain and Germany.
The Jaguar Land Rover deal, according to that firm’s CEO Ralf Speth, “not only signals the acceleration of our growth plans but also reflects both the importance of the Chinese market to Jaguar Land Rover and our value to the UK economy.”
Jaguar-Land Rover currently has three manufacturing plants in the United Kingdom, one in Halewood, Liverpool (a former Ford factory) and two in the West Midlands, Castle Bromwich and Solihull.
The current British Government , despite enacting austerity measures to stimulate economic recovery, including major slashes in public spending, hopes that the China deal will help spur growth at home.