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5% bottom line loss, China auto rental search growth logic

In 2011, coinciding with China's accession to the World Trade Organization for ten years. The WTO has brought earth-shaking changes, rapid growth of the national economy, but it was this year, pace of growth of China's auto industry stopped compared with 30%, 5% or even lower.

monthly information meeting, held in July this year, China Association of automobile manufacturers will lower China's car market grew from 10% to 5%, on a November press conference, that figure was down to 3%. Automobile Association statistics show that 1-10 month auto production and sales and 15.1606 million, an increase of 2.66% and 3.15%. Car rental network to its forecast, due to the high base last November and December sales, production and sales of 1.8 million and 1.68 million, respectively, on the current situation, in the last two months of the year, auto production and sales to reach year-earlier levels, "still difficult".

by contrast, the past few years, China's auto market has experienced a "blowout"-type growth. "Blowout" means car sales continue to rise close to 40%--from 2008 total sales of 9.34 million vehicles, by 2009, 13.65 million units sold, sales by 2010 1806 cars again.

This also means that 2009 car sales rose as high as 46.2% in 2010, growth has reached 32.4%, two consecutive years of net increase in excess of 400duowanliang. Only 4 million of this incremental number, is equal to China before the WTO nearly twice times the 2000 sales of 2.08 million vehicles a year.

now, although China remains the world's automotive production and sales of great-power status, but 5% increase the bottom line has become the auto industry have to face insurmountable gap. In fact, although the Automobile Association recently released sales figures, trying to calm pessimism in the automotive industry, but foreign media have begun to worry China's auto production and sales growth slowdown will have a certain impact on multinationals.

foreign media said that are looking to take the China market "Dongfeng" automakers this year must be used here only "Breeze", some analysts earlier this year, the auto industry's expectations are too optimistic.

behind the slowdown in the auto market, some people think that this is the inevitable trend of automobile industry structure upgrade, also expressed that this is the direct result of policy impact.

following the 2010 "tax relief," "car to the countryside" and "old-for-new" 3 after the subsidy policy to promote automobile consumption withdraw, private car entered a stage of slow growth and cash purchases.

from a management point of view of the Government, other than Beijing implemented a restriction, traffic restriction policies, and Guiyang cities also unveiled a policy to limit car trips. Nan shan car hire airport car hire, rental car rental at the same time, sharp price increases in parking fees have been implemented in most cities, average price increases of more than 40%.

analysis of the China passenger car Association said landslides of the automobile market will continue into the first quarter of next year, if not longer.

but we also see that Chinese urban families with annual incomes of more than 60,000 yuan of about 60% have a car now, from this perspective, subsequent growth seems to be predictable. The State information center, Director of the information Department said total, in the long run, China's car market at least ten years of rapid growth, growth rate of roughly equivalent to 1.5 times of the GDP growth rate.

first, the Midwestern city's great potential, although the North, upper and wide leading groups in eastern cities have made rapid development, but development has only just begun in many cities in the Midwest, the massive urban construction to continue for quite a long time, for sustained impetus to the development of automobile industry.

second is constantly improving the level of urbanization, 1.34 billion people in China, urbanization has improved each 1% are 13.4 million people, about 3 million students a year from the country, every year, more than 13 million migrant workers and their families to the town, this trend will last for more than a decade.

Moreover, the growth of luxury cars will be the highlight of the entire industry, the "Twelve-Five" period, the luxury-car average growth higher than the overall average growth rate of 5 per cent of passenger cars. Therefore, in the context of a slowdown, China still has reason to welcome the next "golden age".

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