Home>>Business
Last updated at: (Beijing Time) Tuesday, October 28, 2003

Auto giants striving for production growth in China

Before the opening of the 37th Tokyo Motor Show, auto giants like General Motors, DaimlerChrysler, Toyota and Honda expressed that they are striving to enhance China's production capability in response to the rapid expansion of China's auto market and the supply tailing behind demand here.


PRINT DISCUSSION CHINESE SEND TO FRIEND



"Brand" Strategy by Ankai Auto Group
Before the opening of the 37th Tokyo Motor Show, auto giants like General Motors, DaimlerChrysler, Toyota and Honda expressed that they are striving to enhance China's production capability in response to the rapid expansion of China's auto market and the supply tailing behind demand here. This is a sharp contrast to the slow moving in the developed markets of the U.S. and western Europe where they are cutting staff and the number of factories.

Rick Wagoner, president and CEO of General Motors said that his company plans to go all out to enhance China's production capability in a most effective and speedy way. Measures to be taken may include the purchase of existing facilities, take-over of resold factories and construction by itself.

Besides, other high-level personages in the auto industry also expressed their optimism about China's market. Mr. Hubert, member of the board of DaimlerChrysler, CEO of a Mercedes-Benz subsidiary expected China to remain "a growing market in the three years to come."

Jean Martin Folz, CEO of PSA Peugeot Citroen said that PSA expects a rapid growth in China and its goal is to carve out a market share of 10 percent. PSA plans to put out new Peugeot cars since the present ones in China are limited to Citroen.

Japanese auto manufacturers, personages of Toyota, Honda and Nissan etc at high levels all expressed their ambitious plans in expanding China's auto market.

However, warnings are heard from some managerial personages that there still exists a risk of supply-over-demand in China's market in a short term. Hubert said that, when all auto manufacturers throng to China's market, an excessive production capability is inevitable. However, other leaders are of opinion that a greater risk is to miss the rapid growth in China.

Before announcing the plan to expand production in China, General Motors and his joint venture partners have taken a series of relevant measures. Managerial personages of auto industry said that the demand of new cars in China is jumping at a double-digit rate. Therefore, the sales of new cars are to overtake that in Germany this year if not later.

By PD Online staff Gao Lanrong


Questions?Comments? Click here
    Advanced






Competition heats up in China's luxury car market

Chinese banks and auto companies warned of market trend

China promoting healthy growth of auto industry: vice-premier





 


US manufacturers' wish to complain to WTO about RMB: a good thing for China ( 4 Messages)

548 billion yuan invested in China's education last year ( 4 Messages)

President Hu talks about Taiwan, SARS, RMB ( 6 Messages)

How far we are away from a space power? ( 6 Messages)

India's after joint military maneuver with China ( 13 Messages)



Copyright by People's Daily Online, all rights reserved