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Despite the majority of auto manufacturers reporting record sales and earnings this year thanks to a healthy Chinese market, the future in China may not be as bright as it was in 2011.
China as a whole is dealing with some tough economic factors with their stock market down, real estate prices dropping and now the prices of luxury cars from German manufacturers Audi, BMW and Mercedes-Benz are selling for way below MSRP. The average price of a 2012 Mercedes-Benz C200 were sold at 16-percent below MSRP at Chinese dealerships, a continual decline from the 14-percent below in October and 3.4-percent below in July. BMW on the other hand, sold their 320i sedan 11-percent below the suggested price, more than triple the initial discount for the 2011 model.
Despite this, Audi posted a 69-percent increase in China deliveries to 29,861 units while BMW had a 9.8-percent increase in sales in China while Mercedes-Benz increased deliveries by 24-percent. But 2011′s growth in China will most certainly not replicate itself in the future to come, which could prove troublesome to many of the manufacturers that are currently undergoing big capacity expansions.
[Source: The Truth About Cars]
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]