Foreign automakers to increase presence in China; local carmakers focus on exports

Despite a slowdown in the growth of China’s passenger car market in 2011, automakers predict strong sales in 2012 and some international brands are aiming for a 25% year-on-year increase. International automakers are bent on increasing brand awareness and growth in the western and interior regions of China. On the forefront of foreign automakers making a bid for higher sales in China are Japanese carmakers Honda, Mazda,Toyota, Nissan and joint venture companies Dongfeng Honda, FAW Toyota and Dongfeng Nissan, which are all planning to launch new models and penetrate the interior regions by increasing the number of car dealerships across the country. Meanwhile, Chinese carmakers are focusing on export growth to offset low sales. Geely announced its plans to sell cars in developed markets, and others, like Great Wall said it will assemble cars outside of China. Emerging markets continue to provide the biggest potential and Chinese carmakers Chery and JAC have announced plans to build plants in Brazil as a first step in gaining a stronger foothold. The China Chamber of Commerce expects vehicle exports to increase by 50% this year, from the total export of 849,914 units in 2011. (February 16, 2012)