Production forecasts in China in 2016 (PC + LCV)
- Since 2005, China's automobile production is growing rapidly.It rose from 5 million units that year to 13 million in 2009 and 22 million in 2013, becoming the largest producer in the world. In 2014, 23 million units threshold was reached (23.4 million). In 2015, China's production experienced for the first time in ten years a slowdown that is reflected by weak growth (23.7 million units).
- The months of April, May, June and July 2015 even experienced a decline compared to the same month in 2014.
- But it seems that the recent reduction of 50% off tax on the purchase of small cars (the charges being reduced from 10% to 5%) had a positive impact on the Chinese automotive market, and consequently on Chinese automotive production.It should be recalled that 97% of Chinese production is currently sold locally (only 3% is exported), a figure that also increased in the past two years.
- China has indeed increasing difficulty to sell its cars abroad, while many markets around the world are growing rapidly. This means that Chinese products do not quite match the global demand, but only match Chinese demand. In 2016, Inovev expects greater growth than in 2015 of approximately 4.5%which is in line with the last few months of 2015 (after the tax reduction started).
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