Research And Markets: China Auto Industry Review - The Brakes Are On, But Not For Long.DUBLIN, Ireland -- After an explosive couple of years, China's car market hit the buffers in 2004. Despite the slowdown in sales, there has been no let-up in the pace of investment in the market, with all the leading automakers jostling for position in the market. Carmakers are talking big numbers - altogether, foreign automakers are spending US$13bn to triple annual capacity to 6m units by the end of the decade. But this has raised new fears that overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. , the bugbear of the auto industry in its developed markets, could hit China as well. Research and Markets (http://www.researchandmarkets.com/reports/c9984) has announced the addition of China Auto Industry Review - The Brakes Are On, But Not For Long to their offering Overcapacity would lead to a hotting-up of the price war that is already raging in China, analysts fear: "The price wars are set to rage for at least the next two to three years. Nobody is going to be immune," said Lin Wenjun, auto analyst at Capital International Holdings in Shanghai. Haitong Securities analyst Gu Qing said: "The market is becoming saturated. We are just not going to return to the heady head·y adj. head·i·er, head·i·est 1. a. Intoxicating or stupefying: heady liqueur. b. days of growth." And JP Morgan analyst Frank Li added: "China's auto market will face increasing oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies in the next two years." JP Morgan estimates oversupply in China to reach 11% this year and 23% in 2005. The contents of this report are as follows: Introduction Clampdown clamp·down n. An imposing of restrictions or controls: "Advertisers and broadcasters would raise howls of protest against any strong clampdown" Wall Street Journal. on loans Price wars raging Materials supply shortages Underlying long-term growth Government Policy Piracy piracy, robbery committed or attempted on the high seas. It is distinguished from privateering in that the pirate holds no commission from and receives the protection of no nation but usually attacks vessels of all nations. continues to be a problem The independent manufacturers Export drive Short-term slowdown aside, global vehicle manufacturers head new investments in capacity General Motors Volkswagen Toyota Honda Hyundai Ford PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. Peugeot Citroen BMW BMW in full Bayerische Motoren Werke AG German automaker. Founded as an aircraft engine manufacturer in 1916, the company assumed the name Bayerische Motoren Werke and became known for its high-speed motorcycles in the 1920s. DaimlerChrysler Renault-Nissan MG Rover Tata For more information visit http://www.researchandmarkets.com/reports/c9984 |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion