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SHANGHAI, March 20 (Xinhuanet) -- China will become world's biggest auto
manufacturing center worldwide in the next three to five years, said leading
European consultant organization Capgemini.
International auto companies cannot wait for a share the cake, said Peter Kroll,
vice president of Capgemini.
General Motors, Volkswagon, Toyota and Nissan are busy establishing their
manufacturing bases in the vast and low-cost Chinese market. Kroll said China
has attracted 60 to 80 percent ofthese companies' total investment in the
international market.
"Whether or not they can gain a success in China will be decisive to the
future development of the auto giants," Kroll said.
Many transnational companies have chosen to close down the car factories in
their own countries and transfer them to China, meaning China will also become a
huge source of car export. Kroll said.
On the other hand, the potential of China's own auto consumption market is
great, Kroll added.
Despite having a per captia 1,000 US dollar GDP, China's risingmiddle class
has shown increasing purchasing power. He predicted that China's auto
consumption will grow, prices decline and the loans and lease services become
more widespread.
Surveys conducted by Capgemini show that the psychic and tastesof Chinese
auto buyers are somewhat different from the consumers in other countries.
Kroll said Chinese consumers buy new cars not secondhand ones. When they
decide to but a car, they prefer to listen to the adviceof family members,
friends and colleagues instead of reading related publications or receiving
professional evaluation services.
Few Chinese buyers show devotion to a particular brand. They seldom buy the
same cars from the same retailer, Kroll said.
Also, 70 percent of the Chinese consumers are first-time car buyers, which
means a huge commercial opportunity, said Kroll.
China's entry into the World Trade Organization (WTO) has brought a sharp
fall of car taxes. Chinese consumers have great expectations for prices of both
imported and domestic-made cars, said Kroll. Many people are now taking a
wait-and-see attitude, bringing big pressures to the auto market.
The growing production material costs and higher oil prices complicate the
auto industry as a whole.
Kroll said many local auto makers must quickly respond to the question: how
will they keep and develop their own brands during the cooperation and
competition with the transnational giants?
To solve the problem, he advised Chinese auto makers to learn from the
experience of the their Eastern Europeans, who faced the same difficulties ten
years ago.
Kroll said the Romanian Dacia auto company is a successful example. It
managed to optimize the design, improve quality and cut costs of their own cars
with the help of their cooperator Renault's technological platform, management
experience and sale network. Not only have they kept the brands, but also seized
a larger market share in the country. Enditem |