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Honeymoon over for China's homegrown autos (2)

(People's Daily)

15:49, November 08, 2011

Another set of sales figures has also showed the difficult situation facing domestic carmakers. A Chinese carmaker enjoyed an encouraging performance abroad in the third quarter of this year, but among its 10 car models sold inside China, only an A00-class small car sold more than 10,000 units per month, and two models sold more than 6,000 units per month.

The average monthly sales figure of a midsize model for which the carmaker had high expectations was only around 2,300 units. Furthermore, only one of the carmaker's four midsize and large vehicles that were expected to promote its brand image sold more than 1,000 units per month in the third quarter.

Domestic carmakers have been making active efforts to promote their brand images, increase their brand values and profit margins and improve the quality of their products and services in recent years. However, their efforts have not generated an encouraging outcome.

Industry insiders said that few domestic carmakers achieved profitability even in 2010 when the auto market was extremely prosperous.

"Some profitable domestic carmakers reduced their production costs by cooperating with joint ventures. A few domestic carmakers made a paper profit but actually incurred losses from their core business," said the owner of a Chinese car company, who declined to be named, adding that domestic carmakers will face an even more difficult situation in the coming months.

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wende at 2011-11-0871.255.85.*
Chinese automakers must improve sales volume by checking on customers" satisfaction with its service, cars" quality, and use marketing techniques like ads, promotion, financing, courtesy

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