China auto exports decrease 58% in first 7 months

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Auto sales within China grew quickly in the first seven months of this year, but just the opposite occurred to auto exports.

At the Tianjin Xingang Port, auto exports decreased by more than 40 percent compared to the first seven months of last year. According to Tianjin Customs, the Tianjin port exported cars worth 660 million yuan in the first seven months of 2009, down more than one third from last year. Auto manufacturers acknowledge the decline, but want the government pay close attention to the decrease.

Wang Ziliang, Vice Chairman of Geely Holding Group said "Our exports declined a lot, by more than 30 percent."

Data shows the country exported 190 thousand vehicles in the first seven months of this year, down by nearly 60 percent from 2008. The Ministry of Commerce is working to deal with the problem, and may implement guidelines for the country's auto exporters.

Officials say although China's car exports only accounts for 3 percent of the world total, and 2 percent of China's total exports, the potential for growth is huge, thus the government should make long-term plan to stabilize car exports. The guidelines will urge exporters to set up sales networks, perfect after sales services, and adjust business structures.

Zhang Ji, Director of Department of Mechanic, Electronic and Hi-tech Industry said "We will try to increase China's share in the world's total auto export from the current 3 percent to 10 percent by 2020."

Aside from the decrease in overseas demand, Zhang says the decrease is due to nonstandard competition. So he urged the government to further regulate the market. In auto parts, the Ministry will enhance a tax rebate policy, to promote auto parts export.