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Automakers race to grab China market share

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Visitors examine the Chinese automaker Baic EX200 powered by solar energy on display at the Beijing International Automotive Exhibition on Monday.
Visitors examine the Chinese automaker Baic EX200 powered by solar energy on display at the Beijing International Automotive Exhibition on Monday.

Published: Tue 26 Apr 2016, 9:00 PM

Last updated: Tue 26 Apr 2016, 11:03 PM

There was intense competition at play on the first day of the Beijing Auto Show as global and local carmakers were out in full force to grow their share in the world's largest auto market.
Even as vehicle sales growth slowed to 4.7 per cent last year in China, down from 6.9 per cent in 2014, sports utility vehicles (SUVs) and new energy vehicle sectors are hitting the gas full throttle.
The relaxation of the one-child policy to allow all couples two kids could see demand rise for larger vehicles in China. Chinese drivers are also rushing to buy SUVs for safety on the country's chaotic roads.
The drop in oil prices have made these vehicles more affordable to run.? SUV purchases in China surged more than 50 per cent in the first quarter of 2016 from a year earlier, while sedan sales fell 9.3 per cent, according to industry data.?
The most popular SUV models are small, crossover types, with a vast majority of buyers opting for engines smaller than 2.0 litres. The best-selling SUV in China is the Haval H6 while the best-selling foreign SUV is the Volkswagen Tiguan.
?Higher margins in the SUV segment have made the vehicles a driver of profits for foreign automakers. However, increasingly popular cheaper local models have made significant inroads in claiming market share.
For instance, in March, six of the 10 top-selling SUVs were from Chinese firms. The auto show alternates between the capital and commercial hub Shanghai.?
deepthi@khaleejtimes.com?
With help from agencies

By Deepthi Nair

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