Source: CCTV.com

02-20-2009 11:09

While China's auto exports shrinking dramatically, imports are still heading forward, especially green vehicles.

Latest figures show China's auto imports rose by nearly a third in 2008, to 410 thousand units. The value was over 15 billion US dollars, up 40 percent year-on-year. Hybrid electrical and low-emission vehicles are taking a larger share. The strong demand in the Chinese auto market remains attractive to overseas auto makers.

While China's auto exports shrinking dramatically, imports are still heading forward, especially green vehicles.

Li Mingxing, deputy chairman of China Enterprise Confederation, says, "when per capita income reaches 3,000 US dollars, people will consider buying autos, instead of only home appliances."

In January, China overtook the US for the first time in the term of monthly auto sales, by 790 thousand units. A survey showed Chinese households with an annual net income over 5 thousand yuan per person put a car at the top of their most wanted items. A car is in second place with those households making less than 5 thousand per person. And shrinking overseas demand is prompting a re-alignment in the auto industry.

Zhang Xiaoyu, exec. deputy chairman of China Machinery Industry Federation, says, "it's not a bad thing. Auto imports are not like other machinery trades. It highlight quality-service and ample part supply. Only large and strong auto manufacturers can hold onto the market."

China exported 680 thousand vehicles in 2008, the growth rate down 68 percent. The number of vehicle exporters was 45 less than 2007.

But the number of bigger exporters with an export volume over 100 million US dollars grew slightly.

These companies make up around half of the country's total auto exports. Experts say it's surely a sign of restructuring in the sector.

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Editor:Qin Yongjing