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BAIC Chairman not worried about excess automobile production

来源:http://www.joyoungtrade.com 作者:ca88 时间:2019-09-11 23:32

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Increasing overproduction has become an increasingly contentious issue in the Chinese automotive market. However, at a recent event detailing his company's overseas sales strategy, BAIC Group Chairman Xu Heyi stated that he is not especially worried about the issue, the Beijing Youth Daily reported today. In his view, it is important to consider not only domestic demand for automobiles, but also demand from overseas markets. He points out that Chinese automobile exports are estimated to make up 30 percent of the country's total automobile sales by 2020. Therefore, if China's annual cumulative automobile production capacity reaches 30 million units, total export volume should be around ten million units.

Buses remained one of the fastest growing commercial vehicle segments in China, with a total of 140,200 buses sold in the country from January to April. That sales figure is equivalent to year-on-year growth of 10.9 percent, far above the industry average rate of 2.4 percent. The increase of school buses and improving public transit were cited as two major factors behind the strong growth rate the segment experienced during the four month period.

Hebei's capital of Shijiazhuang may be joining the list of cities in China limiting new automobile purchases. According to a report appearing the National Business Daily today, the government of Shijiazhuang has issued new legislation to combat pollution in the city. Among the measures listed to deal with air pollution, restrictions on new automobile purchases and driving times were mentioned. If Shijiazhuang does indeed adopt a policy limiting the number of new car sales, it will be the fifth Chinese city to have done so, following Shanghai, Beijing, Guiyang and Guangzhou.

BAIC's stated goal is to sell 400,000 vehicles to foreign customers by

"Due to more stable macroeconomic [conditions] and the increasing rate of urbanization, the bus industry is expected to achieve growth of eight percent to ten percent this year," stated Yu Zhenqing, deputy head of the bus division at the China Highway and Transportation Society.

According to the legislation, households will be prohibited from purchasing a third passenger automobile as of 2013. Furthermore, new restrictions limiting the days on which vehicles can be driven depending on their license plate numbers will be initiated the following year. The legislation outlines that Shijiazhuang's goal is to keep the total number of automobiles in the city below the 1.9 million mark at the end of 2013, with annual growth capped at 100,000 vehicles until 2015 and 90,000 vehicles afterwards. The government states that it is aiming to enforce stricter rules to increase the barrier of entry to owning a car.

  1. 70 percent of those vehicles will be manufactured overseas. In order to achieve that sales result, BAIC has established a new subsidiary company exclusively dealing with developing and managing its overseas operations. The subsidiary, which is based in Beijing, will oversee the export of own brand vehicles and auto parts, foreign investment and international cooperation. Regional centers will be established in Africa, Western Asia, the former Soviet Union and Latin America over the next three to five years.

Both the overall light bus and large bus segments experienced positive year-on-year sales growth from January to April, with the light bus segment's sales increasing nearly 15 percent. Sales of medium buses fell slightly during the same time period.

The legislation also mandates the removal of certain antiquated, high fuel-emission automobile models. According to it, over 10,000 of such vehicles will be removed from the city's streets by the end of this year. According to the prescribed timeline, by 2017, there will be no such automobiles in use in Shijiazhuang.

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