China auto market to grow 10% or less in '09

Shanghai, December 16 (Gasgoo.com) China's auto market is unlikely to recover from the its slump until the second half of next year and the market growth rate in 2009 will not exceed 10%, said Beijing Business Daily today, citing industry insiders.

Affected by the global financial crisis and other factors, the rapid growth of China's auto market has slowed down in the second half of this year. However, the impact of the global crisis on the Chinese auto market has not been so severe as on the U.S., European and Japanese markets, and the China market is still seeing its steady, if slow, growth.

Industry experts said that it is quite possible for China's auto market to grow by 5%-10% in 2009. Many automakers remain optimistic about their sales in the coming year and are seeking ways to boost their market shares. They are set to launch new models and cut vehicle prices to attract more buyers. But consumers will view the auto market and products in a more sensible way.

"Car makers and buyers will act more maturely and practically in the year 2009. The auto companies are expected to care more about the consumer needs, the product quality and after-sales services if the buyers have become more careful with their money and will not loosen their purses as easily as before," said an auto sales executive.

When price cuts, fuel taxes and road conditions are becoming parts of the car drivers' daily life, the auto market may draw back more and more customers who will buy cars to meet their own needs. What is left for the automakers to do is how to solicit these customers by offering them suitable brands, high quality and good services.