Carmakers at China Show Predict New Era of Slower Sales Growth
- China auto association predicts 3% growth in sales this year
- Total vehicle sales have increased average 36% in past decade
Attendees stand near the Hyundai Motor Co. Enduro concept vehicle on display during the China (Guangzhou) International Automobile Exhibition.
Photographer: Qilai Shen/BloombergExecutives gathered last week at the biggest motor show in southern China were unanimous in their view that the days of exponential growth are over, underscoring how a sharp economic slowdown has tempered expectations in the world’s largest car market.
At the Guangzhou Auto Show last Friday, Volkswagen China Executive Vice President Soh Weiming predicted that industry passenger vehicles may expand three to five percent next year. Jiang Jun, president of FAW Toyota Motor Sales Co., said the company won’t set high targets for its dealers in 2016 to allow them to “regain strength.” Hubertus Troska, head of China for Daimler AG, noted the heavier discounts in the market while Infiniti Chief Executive Officer Roland Krueger said growth was “normalizing.”