Visitors look at the new Chery Tiggo 7 SUV after it was unveiled at the Beijing International Automotive Exhibition in Beijing
Automakers showcased a new generation of luxurious SUVs at China’s biggest auto show of the year to lure buyers in its cooling, crowded market.
Honda Motor Co. yesterday held world debuts for two SUVs among dozens shown by global and local automakers. Sales of SUVs, the popular option on China’s rough roads, soared 52 percent last year, the only product segment that still is growing in the world’s largest market. Sedan sales contracted by 5.3 percent and those of minivans plunged 17.5 percent.
“We’re seeing a surge of SUV sales in China,” said Renault-Nissan’s CEO Carlos Ghosn, “In our opinion, this is a trend which is going to continue.”
The SUV boom is a financial lifeline to the industry and has allowed local brands to claw back market share from global rivals by offering budget-conscious buyers SUVs priced as low as 45,000 yuan (USD6,900). But the flood of new models is crowding the market and squeezing products.
As many as 50 new SUVs are due to be launched in China this year by global and Chinese brands, according to research firm IHS Automotive.
Already, local manufacturers Great Wall Motor Co. and Changan Automobile Group have been forced to cut prices on their flagship mid-size SUVs.
“The pricing situation is getting tougher. This is obvious,” said Joachim Wedler, president of Audi China.
Still, automakers see strong growth potential in a market with rising incomes and low vehicle ownership rates. But Beijing and other major cities are trying to curb congestion and smog by imposing limits on new car ownership, which forces automakers to look for buyers in smaller cities where incomes and profits are lower. AP
No Comments