If you ask Western auto manufacturers what they fear more, Chinese car exports or the antichrist, hell, they’ll definitely pick Chinese car exports. Should have chosen the devil: China is looking back at one of the worst car exporting years in recent history.
In the first 11 months of last year, China’s total auto exports dropped 49 percent to a mere 325,800 vehicles, reports Shanghai Daily, based on data provided by the China Association of Automobile Manufacturers CAAM.
China exports only some 2 percent of its production. Surprisingly to some, China imports more cars than it exports. 359,100 units were imported in the first 11 months of 2009, a slight decrease of 4.36 percent in unit sales, but a whopping increase of 73.43 percent in value, as rich Chinese indulge in their lust for luxury.
The export numbers could have been worse. They were saved from eternal damnation by the month of November. In November 2009, Chinese car exports posted their first year-on-year increase in 15 months. China exported 40,600 vehicles in November, up 13.4 percent from a year earlier, for what it’s worth.
I tended to enjoy Mr Schmitt’s articles in the past, but the title of this post is racist and offensive.
He’s mocking the term “yellow peril.”
Considering his wife is a beautiful Japanese lass, I’m guessing Herr Schmitt didn’t mean any harm by the title. If he did, he’s in for an almighty kicking from his wife!
I wouldn’t take offense to it, he was just BSing.
Cue the parade of babies…
Anyway, does it say ‘Beer’ on the back of those pick ups? Interesting branding.
NickR:
It surely would be interesting. Sadly, it ain’t so. It’s a bunch of Great Wall Deer pickups.
As for racism and cue the parade of babies: The author and some of his family.
Herr Schmitt, the only person smiling in that picture is your wife, you look kind of grumpy and the children look distracted! :O)
And now I understand the “parade of babies” comment! What a nice looking family, Herr Schmitt.
Thanks for the pictures. Tongue in checck is not always understood, altho I got it right away as such, since assuming otherwise is a large leap of negative faith about a fellow man.
Anyhoo, let’s keep in mind that the Koreans were getting written off by many car guys not too long ago. Don’t count the Chinese out just yet.
That’s a very good point, and one I rarely consider but probably should. The Koreans weren’t given much thought 2 decades ago, and even as recently as 5 years ago they weren’t much more than a minor annoyance to the established players. Now they’re gaining ground at a rapid pace, and if the rest of the auto world isn’t scared, then they’re stupid. The Chinese very well could take the industry by surprise just like the Koreans have. Maybe the other automakers out there will take the Chinese threat a little more seriously, but that might be giving them too much credit.
As China has the ability to even export ice-cubes to the Eskimos, so why then are their auto exports so dismal? I would think that this type of manufacturing plays right to their economic strengths.
Automobiles not withstanding, China produces (has the ability to produce) vast numbers of commercial vehicles, buses, trucks, etc that I would think would be well suited to most of the world.
For some reason its a slow process, but you are right, African and Central and South American countries are ripe for these types of vehicles. More so in Africa where there aren’t local subsidiaries of global companies churning out vehicles. South America has a healthy semi-local industry with many makers, and costs are low enough (maybe) to not see these Chinese imports through. I also think many around the world are still (rightly) skeptical of the reliability of these vehicles. That is a key characteristic when you live in the middle of the Andes or the Sahara, you don’t need your Deer truck breaking down on you.
Perhaps they are using the production domestically… leaving not much to export? I predict they will be a major power in the global auto market, someday.
That’s exactly my thought. There was so much increase in domestic production that they didn’t even bother to export much.
It’s just an uninformed opinion, but I have feeling China might be able to spool up just a bit to handle domestic and challenge foreign markets.
They are exporting a sh*tload of AUTO PARTS.
There is no doubt about that.
Why?
Well, Chinese car exports weren’t much to write home about as they were. Went mostly to poor Mid-Eastern and African countries, $7000 pick-ups and the like. The global crisis hit those countries and their currencies hard, the markets collapsed. As reported earlier, the Chinese government is highly unhappy with these developments and promised export support.
It will be a while until Chinese cars will be ready to compete in the volume markets, but when they are, watch out. The companies to watch are Great Wall (has the most ECE certified cars,) BAIC (bought Saab tech) and especially Geely after they have bought Volvo.
As for the sh*tload of exported parts: Down 29 percent. A lot of these parts go into American cars, and we know how they fared last year.
Something I’ve learned from history: Anytime you write off an entity as not being worth worrying about, you’re invariably wrong – eventually. I see the Chinese as players in the American car market. The only questions are when, and how long from now?
I’ve already got my convictions parked in the garage: A Jinan Qingqi 150cc scooter that’s been my main transportation for the work commute for the past two years. 10,000km on it, and the problems have been minor (one handlebar switch gone back, one snapped bolt, non-critical). My original plans were to keep the Qingqi for three years, then replace with a Honda, assuming I liked commuting on a scooter better than a motorcycle.
I’m seriously considering replacing the Qingqi with another next year.
I bought a American made (Yerf Dog) compact utility vehicle (sort of a side by side ATV) with a dump bed for some light farm use. It has some sort of one-lunger, oil cooled, Chinese engine with electronic ignition. I’m waiting for it to blow up or quit so I can replace it with something a bit more domestic, but it won’t die. Runs like crap and is hard to start, but it always starts and eventually runs well enough.
For a minute there…
I thought they were importing Jeep Comanches…
http://en.wikipedia.org/wiki/Jeep_Comanche
I am properly indoctrinated with the politically correct ideologies and view white bread as racist and its separate area on the grocery store shelf as segregation.
Keep that dark-colored rye bread far away.
Right now China’s domestic market is expanding so fast that it is soaking up all their production. That won’t continue forever. Then look out.