Industry group warns more than half of Chinese brands will vanish in 3 to 5 years
More than half of China's domestic car brands will be weeded out by competition over the next three to five years, predicted Dong Yang, vice chairman and secretary general of the China Association of Automobile Manufacturers.
With more Chinese cities restricting vehicle sales and global automakers expanding production, competition in China will heat up, Dong said at a media briefing last week in Beijing.
In the first half of this year, China's passenger vehicle sales rose 7.1 percent year-on-year to 7.6 million units. But sales of domestic Chinese brands dropped 0.2 percent to 3.2 million units.
As a result, the market share of the domestic brands declined 3 percentage points to 41.4 percent during the period, according to the industry association.
Compared with global brands, domestic Chinese bands are particularly weak in r&d and brand image, said Dong.
So it is inevitable that the domestics will lose more market share going forward, he added.
In the first half of this year, China's passenger vehicle sales rose 7.1 percent year-on-year to 7.6 million units. But sales of domestic Chinese brands dropped 0.2 percent to 3.2 million units.
As a result, the market share of the domestic brands declined 3 percentage points to 41.4 percent during the period, according to the industry association.
Compared with global brands, domestic Chinese bands are particularly weak in r&d and brand image, said Dong.
So it is inevitable that the domestics will lose more market share going forward, he added.
