CHINA S second major auto show for 2010 opened yesterday in Guangzhou, capping a year of record sales for the country s booming auto market even as it faces the prospect of slowing growth.
Unlike its glitzier cousins in Beijing and Shanghai, which are held in alternating years and are aimed more at establishing China s presence globally with product launches, the Guangzhou show has always been aimed at local buyers.
But carmakers are still putting on a show for the tens of thousands of potential buyers expected to pour into the eighth annual Guangzhou International Automobile Exhibition. The show, known as Auto Guangzhou, runs from yesterday its media day to Dec. 27.
China overtook the United States in 2009 as the world s biggest car market, with sales surging 45 percent to 13.6 million vehicles. Monthly sales this year have seen double-digit percentage growth and analysts are forecasting that for the year as a whole, sales could climb roughly 30 percent to about 17 million vehicles.
Such explosive growth may not continue in 2011 because tax cuts and other government incentives look set to end, although analysts say sales will still expand at a brisk clip.
The growth rate will slow down but it will still have healthy momentum. We think there will be 8 to 10 percent growth for passenger car sales next year, said Lin Huaibin, a Shanghai-based analyst at IHS Automotive.
For many foreign automakers, China is their best hope as they struggle with weak sales in the U.S. and other developed markets.
Marquees from around the world are represented in Guangzhou, ranging from the mass market appeal of Hyundai Motor Co. and Suzuki Motor Corp. to prestige offerings from Porsche AG, Maserati and Aston Martin.
Toyota Motor Corp. and its upscale Lexus division are out in force with 45 models on display, three of them making their China debuts. Nissan Motor Co. promises the global launch of one model of the 18 cars it has on show, including six from its luxury Infiniti brand.
Local carmakers, which have been itching to expand overseas, also have a presence.
Geely Holding Group, little known outside China until it bought Sweden s Volvo Cars from Ford Motor Co. in August in a US$1.5 billion deal, will have at least 13 models on display.
One of this year s hot themes has been so called green cars, including hybrids and electric vehicles.
General Motors Corp. s joint venture with local partner Shanghai Automotive Industry Corp. has 23 vehicles on show, including battery-powered version of the Chevrolet Sail, which was developed in China specifically with the local market in mind.
Electric vehicles are well suited to China, where most drivers live in crowded cities and typically make short trips. However, despite the hype, they haven t yet taken off.(SD-Agencies)
