In 2007, the Chinese automotive market continued to show growth, albeit at a slightly slower pace compared to previous years. The passenger car segment remained the core of the industry, with cumulative production reaching 6,831,100 units and sales hitting 6,927,500 vehicles, representing a year-on-year increase of 21.94% and 21.68%, respectively. While this marked a slowdown from the double-digit growth rates seen in 2006—when production and sales rose by 32.76% and 30.02%—the sector still maintained a robust expansion. With passenger cars accounting for 71% of the total automotive market, the deceleration in their growth also impacted the overall industry's momentum.
The basic model (car) was the primary focus of competition. In 2007, the industry produced and sold 4,797,700 and 4,746,600 units, respectively, showing growth of 23.99% and 23.46%. These models accounted for 53.76% of total car sales and 75.05% of all passenger car sales, underscoring their dominance. Top manufacturers like FAW-Volkswagen, Shanghai Volkswagen, and Chery led the market, with Dongfeng Honda seeing a remarkable 100.47% sales increase, reaching 127,000 units. Popular brands such as Jetta, Camry, and Accord continued to dominate consumer preferences.
Meanwhile, Multi-Purpose Vehicles (MPVs) occupied a smaller share of the market, with production and sales reaching 224,700 and 227,700 units, respectively, growing by 15.42% and 18.14%. Their market share stood at 2.57% of total car sales and 3.58% of passenger car sales. MPVs faced challenges due to rising fuel prices and limited functional appeal, though brands like Ruifeng and Buick GL8 remained active in the segment.
Sports Utility Vehicles (SUVs), on the other hand, became a new trend. Production and sales hit 370,100 and 357,400 units, up 51.21% and 50.09% year-on-year. SUVs contributed 4.06% of total car sales and 5.67% of passenger car sales. Brands like Dongfeng Honda’s CR-V and Beijing Hyundai’s Tucson gained popularity, with the CR-V particularly noted for its stylish design and versatility.
Crossover vehicles had a more ambiguous position in the market. With production and sales of 998,600 and 987,800 units, they grew by 7.29% and 7.62%, contributing 11.24% of total car sales and 15.68% of passenger car sales. However, regulatory issues in major cities led to some “black†or non-compliant models, creating uncertainty in the segment.
Turning to the commercial vehicle market, it experienced a significant rebound in 2007. Total production and sales reached 2,501,300 and 2,494,000 units, up 22.21% and 22.25% year-on-year. This growth followed a period of fluctuation in 2005 and adjustment in 2006, leading to a more balanced development between commercial and passenger vehicles. Heavy trucks saw strong growth, with sales reaching 487,500 units, up 59.63%, while semi-trailer tractors showed even higher increases, especially in the over-40-ton category.
Medium and light trucks also played important roles. Medium trucks saw a decline in sales, but non-integrated models surged by 63.20%. Light trucks maintained steady growth, with 1,104,900 units sold, an increase of 16.19%. Micro-cars, although small in scale, showed consistent performance, with sales rising by 8.36%.
Passenger buses and coaches also saw growth, with large buses increasing by 26.56% and medium and light buses showing moderate gains. Companies like Zhengzhou Yutong and Jinbei Automobile were among the top performers.
Looking ahead to 2008, the market was expected to grow cautiously, with forecasts ranging from 10% to 20% depending on the source. Factors such as economic growth, government policies, and global trends would shape the industry. While there were positive signs, including increased localization rates and improved operational efficiency, challenges like rising costs, environmental regulations, and market saturation remained concerns.
Overall, 2007 was a year of mixed performance, with the passenger car segment continuing to lead and the commercial vehicle market regaining momentum. As the industry entered 2008, companies needed to balance growth with stability, focusing on innovation, cost control, and long-term sustainability.
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