China Vehicle Export: Drops due to Political Instability and Trade Protectionism at Export Destinations
- China's vehicle export has been dull since 2013 due to higher vehicle prices as a result of vehicle lineup adjustments by automakers and the revaluation of the Chinese currency. Political instability and stepped-up trade restrictions of core markets are also blamed for poor results. Export volume in 2013 decreased 7.5 percent compared to the previous year to 977,274 units. Of which, passenger car export fell 9.8 percent to 596,286 units and utility vehicle export declined 3.5 percent to 381,006 units.
- Looking at results by automaker, Chery Automobile dropped 28.2 percent to 133,000 units due to the reorganisation of its product strategy. Nevertheless, it remained top Chinese vehicle exporter. Among the top 10 vehicle exporters, Great Wall, Dongfeng and Lifan each posted double-digit decline, while Geely, SAIC, Brilliance and BAIC realized double-digit increase. In particular, Brilliance rose some 60 percent to 70,000 units, ascending from 11uh place to fifth.
- Looking at export volume by region based on customs data, South America fell 25.2 percent to 110,000 units in the first half of 2014 due to Brazil's increase of IPI excise tax on imported vehicles and worsening economic conditions in Argentina. Export to Africa fell 15 percent to 108,000 units, reducing the continent's export ratio to 22 percent. In contrast, the Middle East increased 41.8 percent to 96,000 units, pushing up its export share to 19 percent. Export to Asia increased 6.8 percent and Europe posted a slight increase as well.
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