Subscribe free to our newsletters via your
. 24/7 Space News .




CAR TECH
SUV makers flock to China as sales boom
by Staff Writers
Beijing (AFP) April 25, 2012


Automakers are rushing to cash in on China's growing passion for SUVs, with sales up five-fold in the last half-decade, as increasingly affluent urban consumers seek to showcase their wealth.

Once associated with rural life in China, the SUV, or sports utility vehicle, is increasingly favoured by city-dwellers, and manufacturers flocked to Beijing to display their models at the country's largest auto show this week.

Zheng Chengfei, editor of the China SUV Weekly, forecasts sales in China will grow between 20 and 30 percent in 2012, with more energy-efficient urban and compact models likely to lead the market.

"China's SUV buyers want a powerful car that reflects their rising social status," Zheng told AFP, adding most SUVs were sold to successful urban professionals.

"They are looking for a big car with lots of space so they can get away for a relaxing weekend with the entire family, including grandparents."

The China Association of Automobile Manufacturers says sales of the powerful off-road vehicles topped 1.59 million last year -- up 20 percent from 2010 and five times higher than five years earlier.

Daimler AG, which owns the Mercedes-Benz brand, is among the foreign carmakers seeking to further tap into the lucrative sector in China -- the world's biggest auto market.

"It's a combination of emotion and utility which ultimately leads to this strong development of SUVs around the globe, including China," said Dieter Zetsche, chairman of Daimler AG and head of Mercedes-Benz Cars.

"The main purpose is not to get off road onto the top of mountains, but to differentiate yourself from others, with the additional benefit that you have this higher seating position that gives you this kind of 'in control' feeling."

China emerged as the world's top car market in 2009, but the sector stalled dramatically last year, with sales rising just 2.5 percent to reach 18.51 million units after the government rolled back auto-purchase incentives.

Nonetheless, carmakers remain confident of continued steady growth in the Asian nation, where three out of every four new car purchases are by first-time buyers.

Beijing has implemented several policies to try to wean the country away from its growing dependency on oil -- one of which has been to try and promote new energy-efficient vehicles.

It has put pressure on foreign car makers to invest in the clean energy field in cooperation with their Chinese joint-venture partners, and is pushing for more transfer of technology.

But sales of environmentally-friendly, fuel-efficient vehicles in China have been sluggish, prompting foreign carmakers to step up their focus on the SUV market.

Mitsubishi president Osamu Masuko said at the Auto China 2012 show the Japanese company was setting up a joint venture with China's Guangzhou Automotive this year to produce up to 300,000 SUVs annually within five years.

US auto giant Ford plans to introduce three new SUVs in China this year, including its new compact model, the Ford EcoSport, and its Ford Explorer -- the epitome of a rugged gas-guzzling off-road vehicle.

"The Chinese consumer continues to be very interested in international brands for the technology, the quality of the craftsmanship, the brand reputation," said Joe Hinrichs, president of Ford Asia Pacific.

Chinese automakers are also producing a wide range of SUVs, with Changchun, BYD and Chery all introducing home-grown compact vehicles, China SUV editor Zheng said.

"Although most SUVs are being sold in urban areas, we are expecting to see solid growth in the mountainous and desert regions in (China's) west, where the need for all terrain vehicles are especially strong," he said.

.


Related Links
Car Technology at SpaceMart.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








CAR TECH
China city eyes cars to drive its economic future
Wuhan, China (AFP) April 24, 2012
As China seeks to spread its economic boom from the rich coast to its vast interior officials say the central city of Wuhan plans to double its carmaking capacity to almost two million a year. The capital of landlocked Hubei province already hosts separate joint ventures set up by PSA Peugeot Citroen and Honda with China's Dongfeng Motor, as well as many auto parts manufacturers such as Vale ... read more


CAR TECH
NASA's Lunar Reconnaissance Orbiter Brings 'Earthrise' to Everyone

Winners of 19th Annual NASA Great Moonbuggy Race Announced

Russian Space Agency eyes Moon explorations

Russia postpones Luna-Glob moon mission

CAR TECH
Mars Astronauts Could Risk DNA Damage

Asteroid sites hint at life on Mars

WSU astrobiologist proposes fleet of probes to seek life on Mars

People to Land on Mars in Next 40 Years

CAR TECH
Boeing, NASA Sign Agreement on Mission Support for CST-100

Parachutes for NASA crew capsule tested

NASA Announces 16th Undersea Exploration Mission Dates and Crew

Dwindling US Space Budget Worries Scientist

CAR TECH
China's Lunar Docking

Shenzhou-9 may take female astronaut to space

China to launch 100 satellites during 2011-15

Three for Tiangong

CAR TECH
Russian cargo ship docks at International Space Station

Russian Cargo Craft Launches to Station

Commercial Platform Offers Exposure at ISS

Learn to dock ATV the astronaut way

CAR TECH
Assembly begins for the third Ariane 5 to be launched in 2012

ILS Proton Successfully Launches Y1B Satellite For Yahsat

SpaceX aims for May 7 launch to ISS

SpaceX delays first private launch to space station

CAR TECH
Some Stars Capture Rogue Planets

ALMA Reveals Workings of Nearby Planetary System

UF-led team uses new observatory to characterize low-mass planets orbiting nearby star

When Stellar Metallicity Sparks Planet Formation

CAR TECH
360-Degree MEADS Radar Begins Integration Testing

Apple profit soars on rocketing iPhone-iPad sales

China enjoying fruit of Apple's labor

US commission says iPhone infringes Motorola patent




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement