Daily Archives: May 26, 2009

Dongfeng, Geely, Great Wall, BYD Set For Rapid Growth In Chinese Auto Market

Analysts Indicate That Low Ownership Rates, Government Subsidies May Spur Faster Growth Of World’s┬áLargest Auto Market

Dongfeng is looking to compete with other domestic Chinese brands to capture market share from foreign competitors

Dongfeng is looking to compete with other domestic Chinese brands to capture market share from foreign competitors

From the recent Shanghai Auto Show to news that the Chinese government plans to offer higher subsidies for consumers trading in old vehicles for new ones, China’s auto market has been a busy place in recent months. With the sluggish performance of carmakers in more developed global markets, the news that auto shares in China — currently the world’s biggest car market — are expected to outperform this year will, in many ways, comfort global auto companies.

However, as we have previously┬ádiscussed, the news that Chinese car buyers are growing rapidly as a consumer base shouldn’t be enough for foreign automakers — as domestic brands like BYD, Geely, Chery and others vie for dominance in this rapidly-changing market, foreign automakers will have to invest heavily if they are to keep the lead they have built in the last 10-20 years.

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