Conference shows China auto strength


A major conference in Shanghai saw leading automakers and OEMs celebrating the continued growth of the Chinese vehicle and parts markets.

The "Coming of Age in China" Conference, backed by Automotive News China, hosted speakers from several key domestic and global auto and parts organisations to discuss the future growth of the Chinese market.

The conference demonstrated that as far as the auto industry is concerned, China is the target market for development and sales.  Speakers from Ford, General Motors and VW China Group all celebrated the recent growth of the auto industry and vehicle parc in China and predicted massive growth over the next few years.

Ford President for Asia, Pacific and Africa, Joe Henrichs  spotlighted a potential 1.6bn customers in China and India by 2020, with the Chinese market likely to surge forward soonest in 2014.  The market is likely to be predominantly in the sub-$14,500 net revenue sector with Ford likely to increase its professional workforce by around 1200 by 2015.

GM is anticipating a 10-15% growth in sales for 2011 with China eclipsing all other markets by some distance. The company is already heavily involved in China with some 11 joint ventures and is set to introduce more than 60 new and upgraded vehicle models.

There were presentations from domestic suppliers too, including BAIC which is looking to maximise its relationship with brands such as Saab to increase its overall market share and look beyond China for sales. Senior Director of BYD Group, Henry Li, also urged Chinese domestic producers to look beyond the home market, but urged that companies needed to be well prepared, enhance their product quality, invest in branding and marketing and choose the right entry market to reap success abroad.