Chinese Car Market Set to See Slower Growth Phase

Roland Berger report sees growth slowing to around 8 percent, down from 2009 high of 51 percent.

Published: 30-Dec-2010

Is the magic starting to fade in the Chinese auto market?

A new report from consultants Roland Berger warns that, just as China’s market has mushroomed into a position of enormous importance for global auto makers, it is entering a phase of much slower growth than it has experienced recently.

The report, titled “Chinese automotive market: How long will the party last?” notes that China now directly accounts for 14% of total revenue of a typical European auto supplier—double the 7% level of 2007. Add in sales of cars exported from Europe to China, and the total now is about 18%, it says. That’s been a huge boon to companies like Volkswagen AG, BMW AG, the Mercedes-Benz unit of Daimler AG, and PSA Peugeot Citroen SA - and, of course, a similar boon has been enjoyed by U.S. and Japanese rivals like General Motors Co., Ford Motor Co. and Toyota Motor Corp.

But the German consulting firm says those glory days of supercharged growth are over. It projects growth will slow to 15% next year, then 10% in 2012, and 8% by 2015.


Shanghai GM plant producing Buick models.

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Changan Hybrid station wagon.

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BYD e6 electric car operated as Taxi in Shenzhen, China

The Chinese government envisages having 5 million EVs and plug-in hybrids on the road by 2020.


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