Despite the slowdown in China's overall economic growth, China Association of Automobile Manufacturers expects that China's auto market growth rate will be 7% in 2015, entering the low-speed growth stage, but the pace of accelerating expansion of major automakers at home and abroad in China has not been weakened.
In the newly announced global sales of major auto groups in 2014, Toyota topped the list with 10.23 million units, followed by Volkswagen and General Motors with 10.14 million units and 9.92 million units respectively. During this period, the good performance of the Chinese market naturally helped it. In 2014, Volkswagen grew by approximately 12% year-on-year in the Chinese market, with sales exceeding one-third of its total sales. In the same period, Toyota's sales in the Chinese market also increased by 13% year-on-year.
Compared with the low growth rate of 6.9% of China's auto sales in 2014, Shanghai Volkswagen and Shanghai GM's sales growth remained strong, up 13% and 12% respectively, both higher than the overall growth level.
In 2015, many car dealers at home and abroad began to flex their muscles and eagerly try to expand their production capacity in China. With the further expansion of production capacity, its product line in China will be further enriched.
It is reported that Shanghai Volkswagen's factory in Changsha is expected to be officially put into operation this year, and its production capacity will exceed 2 million units after it is put into production.
In addition, with the accelerated expansion of Shanghai GM and SAIC-GM-Wuling, GM's production capacity in China will increase by 30% to 5 million units in 2015.
At the same time, Japanese cars are not to be outdone. According to the plan, Toyota will once again hit the target of 1.1 million vehicles in China in 2015. With the completion of the second phase of the Dalian plant, the total production capacity of Dongfeng Nissan is expected to reach 1.5 million.
Changan Ford plans to continue high growth of at least double digits in 2015. According to reports, Changan Ford will use the new production line of the existing plant of the Hafei Automobile Car Factory. The new plant has an annual production capacity of 200,000 units and is expected to be put into operation in June 2016. By then, Changan Ford's total production capacity will increase to 1.4 million.
While many car dealers are planning to plan high production capacity, the problem of overcapacity in China's auto market cannot be ignored. Industry experts stressed that China's auto market has entered a period of low-speed growth this year, and will also usher in more intense competition. The ability to manage capacity control is an important factor in whether car dealers can ultimately win. In addition, the increasingly fierce competition in China's auto market is also forcing auto marketing to shift from a heavy-duty market to a service-oriented market.
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