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Automobile Association: Automobile production capacity far exceeds market demand

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He Liming, president of China Automobile Circulation Association, held a speech at the annual meeting of China's automobile industry in 2013. He said that the domestic automobile market started to pick up in the first two years this year and entered a stage of steady and rational growth. However, due to automobile production capacity greater than demand, the domestic auto market in the next few years can not be too optimistic.

Statistics show that this year the domestic auto market has begun to pick up over the previous two years, and higher than expected early. First, the first three quarters of this year, car sales growth were close to 13%; Second, the car dealer inventory early warning index and inventory factor, starting in June this year, down to within the warning line and a reasonable inventory area; Third, most car dealers Good operating scale of the level of profitability has improved.

He Liming pointed out that we must see that the current domestic automobile production capacity has far exceeded the market demand. Automobile production enterprises in 2009, 2010, driven by high growth market, the expansion of production capacity, most of the current production has been completed. The release of these capacity, to the market, especially dealers bring great pressure.

He believes that the development of China's auto industry from the point of view, it can be mixed, full of challenges. First, the development of automobile environmental protection, transportation, energy, bring great pressure on the purchase, limit line, limit the consumption of cars to curb local policies and gradually spread to more large and medium-sized cities. Second, domestic manufacturers and imported car suppliers on the domestic auto market is expected to be too high, over-release of production capacity, price war may break out at any time. Third, the automobile market, lack of endogenous power, the performance of second-hand car trading volume less, poor circulation, automobile consumer credit, automobile finance leasing and other automotive financial services development lag. Fourth, the intensity of car scrap is not updated. These factors will restrict the sustainable development of China's auto market.

He Liming pointed out that, as an important part of the automobile industry, the automobile circulation industry should seize the opportunity to meet the challenge and strive to build an open, orderly and efficient modern automobile circulation system to boost the automobile power dream.
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