Foreign media: China's automobile market has shrunk foreign sales worry overcapacity

Posted on 9/2/2015 11:21:04 AM

According to the European automotive media reported inautonews August 31 this year, China's automobile market has shrunk phenomenon, many car manufacturers (including luxury cars included) have taken measures to cut prices. However, more and more car assembly plant will be built in China, China's market is facing overcapacity crisis.
According to the China Association of Automobile Manufacturers (CAAM) released in July this year, car sales hit 17-month low, down 7.1%. Volkswagen sales in China fell 13%. BMW's partner in China - Brilliance China sales fell 45 percent in the first half of this year, GM, Volkswagen, BMW and other global carmakers could not escape the sales slump of doom. GM and VW joint venture Shanghai Group, said that the status quo of Chinese auto market downturn will not change in the short term.
Carmakers in China's auto market is uncertain the next 12 months the ability to "digest" the extra yield two million.
Ford and Volkswagen's China branch just completed, in addition, Ford has also acquired a Chinese domestic car brand, will be put into production in 2016. At the same time, Renault and PSA Peugeot Citroen will also set up branches, SAIC and GM will be at the beginning of next year in China as a Cadillac assembly plant in China.
SAIC and Wuling intends to establish a common focus on the development of electric cars and hybrid vehicles in factories. In addition, Fiat Chrysler plans in 2016 to authorize its partner Guangzhou Automobile Group, which produces Jeep vehicles. Hyundai Motor Company is also optimistic about the Chinese market, respectively, in April and June this year the construction of a factory in Changzhou and Chongqing.
World-renowned consulting firm Oliver Wyman partner, writer Haber reports Ron Harbour said: "The original equipment manufacturers are worried about every nine or ten months will build a new car assembly plant, more worrisome There are many assembly plant is under construction. "

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