P14| China's car market: a new survival rule
Recently, according to the data released byChina passenger vehicle market information joint conference, in October 2019,the retail sales of domestic passenger vehicles were 1.84 million, down 5.7%year on year.
This is the 16th consecutive month that China'scar market is in a downward state. The downward watershed is July 2018, whenChina's passenger vehicle sales market saw its first decline in 28 years.
In 2018, the sales volume of passenger vehiclesin China was 23.71 million, down 2.8% year-on-year. In 2019, the decline waseven worse, with a year-on-year drop of 9.7% in the first ten months. However,China is still the world's largest consumer market for passenger vehicles.
It is generally believed that the continuousdecline of the current market is the result of the superposition of marketfactors and macroeconomic factors. It is still difficult to make a clearjudgment on when the car market will recover and the trend in the short term.
But it is certain that after a period ofadjustment, the future of China's automobile market will still have a lot ofroom for growth. The key is how to adjust in the labor pains and find the rightdevelopment path in this process.
"In the United States, the annual salesvolume of passenger vehicles in recent years is about 15 million, but fordifferent markets, this figure can't explain the problem."
China has less than 180 cars per thousandpeople, while the United States has nearly 800 cars, and Japan has about 500cars. "Compared with countries such as the United States and Japan thathave developed automobile industry earlier, our market is far from reaching thelimit." "Now most participants in the industry have realized that itwill be difficult for China's auto market to have continuous high growth in theshort term, and market adjustment will lead to more and more sales volumeapproaching to the top enterprises." In an interview with China EconomicWeekly, Chen Xueqin, Secretary General of Chongqing Automobile BusinessAssociation, said that the new reality will force practitioners to find newsurvival rules.
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