The Auto Industry in China Recently and Beyond

Jan.-Feb. 2008

The auto industry in China shipped 1.523 million vehicles in the first two months of 2008, including domestic sales and export, growing 19.3% year-on-year, compared with 22% growth for the entire 2007, according to the China Association of Automobile Manufacturers (CAAM). The number of passenger cars shipped grew 18.6% year-on-year to 1.15 million and that of commercial vehicles rose 21.3% to 372,000 units. Continuing the sizable growths in 2007, the shipment of heavy trucks grew 49.9%, SUV (sport utility vehicle) 39.2%, buses 22.8%, and sedans 20.5% during the two-month period, when shipments of mini passenger cars and trucks grew at single-digit rates.

Despite such brisk sales, profitability of Chinese automakers are being eroded by rising material costs. Steel prices, for instance, jumped 350 yuan in the first quarter of 2008, and prices of coal and power will rise sooner or later in the year.

　

The recent years

A CAAM official points out that, after rolling out seven million vehicles in 2006, the Chinese auto industry has produced over 8.5 million vehicles in 2007, and is expected to ship some 10 million in 2008.

CAAM statistics show that the Chinese auto industry produced 9.06 million vehicles and sold 7.95 million in the first 11 months of 2007, up 22.3% and 23.2% year-on-year, respectively, making China currently the world's third-largest automaker, trailing the U.S. and Japan, both of which produce over 10 million vehicles a year.

China is also one of the world's largest car markets: 118 million vehicles were plying the roads in China at the end of September 2007, up 7.22% year-on-year, of which 61.25% was privately owned.

CAAM points out that China's auto-industry output jumped from 2 million units in 2000 to 7.2 million in 2006, showing a 24% annual growth rate and excluding the additional one million units in 2007. Moreover, Chinese automakers are gradually evolving into major exporters, shipping abroad some 540,000 vehicles in the first 11 months of 2007, 6.8% of the total shipment.

　　

The remarkable growth of the Chinese auto industry is attributable to the nation's rising level of affluence and low car ownership. At present, less than 50 of every 1,000 Chinese own cars, which is very modest compared with the global average of 120 and the American ratio of 750. Meanwhile, China-made cars are, along with improving technologies in the Chinese auto industry, becoming increasingly attractive exports for their relatively high performance/price ratio. In other words, made-in-China cars are good value for money.

New 2008 Launches

　　

In 2008, major auto brands in China will roll out new models: Dong Feng Nissan will debut the Livina crossover boasting sedan-and-van versatility, featuring elegant look, spacious interior, and ultra-large storage.

On April 20, China's first real crossover vehicle, Dong Feng Nissan's Livina, debuted at the 2008 Auto Shanghai fair, price tagged in the 79,800~103,800-yuan range for different models.

Dong Feng Nissan's LIVINA

Engine: 1,600 cc

Wheelbase: 2,600 mm

Length/width/height: 4,178 x 1,690 x 1,565 mm

Maker: Dong Feng Nissan

Maximum power: 77Kw/5,200rpm

Production site: China

Maximum torque: 150Nm/4,400rpm

Time of launch: 2007

Acceleration 0-100km/h: 12.6 sec.

List price: 79,800~103,800 yuan

Dong Feng Nissan TEANA

Dong Feng TEANA 200JK

Engine: 1,998 cc QR20 in-line for four cylinders, water-cooling and overhead camshaft

Wheelbase: 2,775mm

Length/width/height: 4,845×1,765×1,475mm

Maximum power: 100kw/6,000rpm

Maximum torque: 187Nm/4,000rpm

Transmission: 4-speed automatic

Gas tank: 70L

List price: 219,800~226,800 yuan

XCAR: 20XV CVT four-wheel drive

Engine: 1,997 cc MR20DE

Length/width/height: 4,315×1,783×1,606mm

Wheelbase: 2,630mm

Brakes: Ventilated disks all-round

Maximum power: 102Kw/5,200rpm

Maximum torque: 198Nm/4,400rpm

List price: 219,800 yuan

Omni-directional Pivo2

The Nissan Pivo received a warm response at its launch in 2005, for its rotary-body design that makes driving easier in traffic jams. Taking super-easy maneuverability a step further, the Pivo 2 designers have included in-wheel 3D motors on all four wheels, enabling the wheels to turn 90 degrees and hence moving the vehicle sideways-turning parallel parking in tight spots into a breeze.

Nissan NV200

Besides its colorful driver seat, the Nissan NV 200 is a radical van for its "drawer-type" rear section, which literally can be pulled out like a drawer for various applications, including a retail display, mini warehouse, or small mobile workshop.

Mazda MPV

Mazda 8 is a seven-seat MPV (multi-purpose vehicle), measuring 4,868 mm long, 1,850 mm wide, and 1,685 mm high, with wheelbase reaching 2,950 mm, maximum power factor 120 KW, and maximum torque moment 209Nm. It is furnished with a four vertical cylinders and 2.3 liter DOHC engine, with price tag exceeding 300,000 yuan.

Mazda 5

Engine: 2,000cc standard & 2,300 optional

Maximum torque: 185Nm

List price: 150,000~200,000 yuan.

FAW Magotan 2.0TSI

Engine: 2,000cc

Maximum torque: 280Nm/1,800~5,000rpm

Transmission: 6-speed manual-auto Tiptronic

Acceleration 0~100kph: 9.3 sec.

New Honda Accord 2.4L

Engine: 2,44cc i-VTEC

Length/width/height: 4,945x1,845x1,480mm

Wheelbase: 2,800mm

Yaris by Guangzhou Toyota

Engine: 1,600cc DOHC & 1,300cc

Maximum power: 87Kw/6,000rpm

Maximum torque: 150 Nm/4,400rpm

Maximum speed: 195 kph

Safety equipment: 1,600cc models come with SRS airbags, ABS+EBD, LED brake light, and ELR safety belt.

Length/width/height: 3,750x1,695x1,545mm

Wheelbase: 1,460mm.