China Automobile Export Hit 20-Month Peak in Aug 2016

According to China Customs statistics, during January-August 2016, China exported 489,000 automobiles, down 2.5% year-on-year (YOY); the export value reached RMB43.61 Billion yuan, down 6.2% YOY.

1. Characteristics of the Automobile Export in August 2016:

(1) Monthly export quantity increased YOY for two consecutive months, August quantity hitting a peak of nearly 20 months in the past (see the chart below.)
 

(2) Ordinary trade volume dropped in proportion, and processing trade volume multiplied.

(3) The biggest export volume reached Iran, with the volume surge in India and USA.

(4) All major auto types had export increase, with big increase in unlisted manned vehicles such as electric tricycles (see the table below).
 

2. Causes of Big Increase in Auto Export in August 2016:

(1) India, the major market, had a strong demand for auto import, driving the export increase.

(2) With domestic competition fierce, Chinese-owned brands effectively explored emerging markets overseas.

(3) China’s auto manufacturing is getting developed and able to provide joint venture-made autos for overseas developed markets.

3. Notable Problems

(1) The Euro-American markets are likely to become new growth point of China auto export, but China’s auto quality standard, appearing lower than the West, is likely to be the biggest obstacle to the growth.

(2) Chinese-owned brands are over-dependent on cheap price to help their export, while lagging behind in brand promotion and marketing channel.