China carmakers worried by export fall as domestic market share shrinks
Chinese automakers are feeling the pinch at home and abroad as exports wane. Data from China's General Administration of Customs shows auto exports dropped by 2.8% in 2014 to 897,000 units, although the value of sales did, in fact, increase by 4.6% to $12.53bn. The average value also increased by 7.7% to $13,967. The only manufacturer to significantly buck the trend was Geely, helped by its relatively recently acquired Volvo brand.
Sedans made up the largest portion of exports at 371,000 units, followed closely by truck at 296,000 units. While trucks enjoyed a year-on-year growth of 3.8% and a value growth of 3.2%, sedans sales fell by 12.5% and value shrank by 5.5% to an average vehicle price of $7,907.
Around 88% of exports were to developing countries, with the ASEAN region becoming the second largest importer of Chinese cars behind Iran, which took some 109,000 imported cars last year.
A modest increase in value is certainly welcome for China's automakers, but a slowdown in demand from core markets could be cause for concern, especially as their domestic market share in decreasing. According to Bloomberg Intelligence, Chinese automakers enjoyed a 41% market share in 2010, a portion that had shrunk to just 28% by the end of 2014.
In a possible bid to drive people away from foreign brands, Chinese broadcasters have launched a number of investigations into substandard practices at foreign carmakers. Land Rover, VW, Mercedes and Nissan have all come under fire recently amid allegations of neglecting Chinese consumers.