Opportunities and challenges in China's automotive industry
Chinese consumers are expected to play an increasingly important role in the development of the economy as China rebalances from an export driven to a domestic consumption driven model.
As the growth of new passenger vehicle sales relative to past years slows, China is still expected to remain the world’s largest producer and consumer of automobiles. It will outperform both the European and US markets in the midterm with its projected high single digit growth.
Expansion in manufacturing capacity continues at an unabated speed and with overcapacity already showing, manufacturers threatened most are expected to increase industry competitive pressure by entering into new segments with low-price market penetration strategies.
The aftermarket on the other hand, still finds itself at a very early stage of development and provides a myriad of opportunities for component manufacturers and service providers who are able to develop and implement the right strategies to capitalize on the significant growing aftermarket demand with the aging of existing passenger vehicles base.
As China’s automotive market enters its next stage of development, both challenges and opportunities await. Companies that develop the right strategies and contingent plans will be ensured continued success in this dynamic market.
More insights about Automotive
