Auto exports gloom in boom 
〖Subject〗Business , Investment 
 
 

By Hao Zhou (chinadaily.com.cn)

The Ministry of Commerce released a comprehensive report on Chinese auto exports in the first 10 months this year. The report is basically a mixed bag, taking the good with the bad, the Beijing Morning Post said today.

In the first three quarters, China exported a total 413,500 vehicles, up 64 percent from the same period of last year. Exported vehicle sales totaled US$4.8 billion, an increase of 117 percent year-on-year.

Of the total export revenues, commercial vehicles accounted for US$1.75 billion, or 36.5 percent, and passenger cars export only US$694 million.

In terms of export volume, trucks were almost half of the total and sedans 30 percent. The Ministry of Commerce's hopeful estimate for the whole year is 600,000 exported units.

In the meantime, average price for exported vehicles surged 32 percent from last year to US$11,600 in the first 10 months, suggesting China is exporting higher quality vehicles.

However, passenger car export prices are going against the grain due to unhealthy competition in the passenger car market. Total export revenue only rose 174.3 percent between January and October, despite export volume roaring 211.4 percent from the same period last year.

Export numbers for sedans and off-road vehicles jumped 250.63 percent and 258.96 percent respectively in the first 10 months, while average unit prices tumbled 19.6 percent and 10.19 percent.

The newspaper attributed the problem to malicious competition amongst Chinese auto manufacturers hoping to boost sales volumes in overseas markets with low prices.

Additionally, among the total 1,242 accounted Chinese automakers exporting vehicles in the first 10 months, some 718, or 57.8 percent, exported under 10 vehicles. Thus after-sale service was unpromising, and not contributing to the "made-in-China" profile.