Focusing on China Minibus Market in 2011
2011-01-18 Source：www.chinabuses.org
www.chinabuses.org: On 31 Dec.2010, the vehicles to the countryside policy completes at due time and the vehicle purchase tax will be issued for vehicles with engines of 1.6 litres or less (10%) since 1 Jan.2011. The minibus market remains blooming in 2010 and it is the focus of the attention whether this trend continues or not.
Market Adjustment
According to the statistic data from China Automobile Association, the production and the sales volume of our cross passenger cars is 2,271,600 units (year-on-year growth of 25.88%) and 2,279,600 units (year-on-year growth of 27.96%) in Jan.-Nov.2010. It doesn’t appear on such rapid growth in 2010 as in 2009 for the minibus market. Almost all the interviewed expressed that the market shows unsteady due to the completion of the favorable policies.
"It is no doubt that the development of the minibus market in 2010 depends on the support of the national policies to a big degree. Supposed purchasing one minibus worthy 40,000 Yuan RMB, about 5,000 Yuan can be saved because of the favorable policies such as vehicles to the countryside."said Cui Dongshu, the deputy secretary general of China Passenger Car Association. And he mentioned that the minibus market will come to the period of adjustment in 2011.
Deng Zhitao, the Deputy Division Chief of Product Management Division of Changan Automobile said that, "In 2011, there will be a big change in the minibus market, possibly negative growth." He analyzed that the current minibus market has tended to saturation. "After the financial crisis in 2008, a great number of farmers moved from coastal cities to inland regions, also the government carries on the encouragement policies, which lead to the growing market demand. And the market has released in recent two years."
Also Cui Dongshu indicated that "Minibuses belong to a kind of seasonable goods. It is predicted that this market goes on downturn in the first half of 2011 and possibly picks up in the third or forth quarter till the consumers gradually get used to the market environment without favorable measures."
Fiercer Competition
In 2008, there are only six minibus producers; Brilliance, Haima（zhengzhou）,Karry Auto and Gonow Auto in 2009 and BAW Group, Shaanxi Automobile Group, Chongqing Lifan and SOUAST Motor in 2010. It is known from many company representatives that the minibus market competition will be fiercer in 2011.
"On the one hand, the established companies will continue to actively extend the market scale and on the other hand, the new companies will strive for the achievement in the region market to get some shares." Cui Dongshu revealed. The new companies should make full preparations, especially for the after-sales.
Dong Zhitao displayed that, "Changan occupies a big market shares with minibuses. It is closely connected with the construction of the sales networks that refers to many factors such as capital and the brand influence on the terminals. It usually cost about 3 to 5 years and the general style will not change although fiercer competition in 2011."
The enlargement of market scale of minibuses necessarily results in the participation of many companies. It offers the customers with more choice to some degree that more minibus producers enter into the market and promotes the industry upgrading, which is good at the development of the whole industry. However, some experts estimated that some companies without brand and good sales channel will confront more challenging and grave risks, even elimination of the market in the competition.
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