Chinese Cars Will Find A Home In The Middle East
BMI View : While the broad decline in Chinese vehicle exports in 2013 plays out our view on the diminishing attractiveness of China as an export hub, we do see some support for auto exports in the coming years as Chinese carmakers look to overseas markets to boost their flagging domestic sales.
According to the China Automobile Manufacturers Association (CAAM), vehicle exports from China declined 7.5% in 2013, to 977,300 units. From the total, passenger car exports came in at 596,300 units, down 9.8%, and commercial vehicle (CV) exports hit 380,000 units, a decrease of 3.5%.
The decline in exports plays out our view that the attractiveness of China as an export hub has been diminishing over the years. The rising cost of labour coupled with the broad escalation of production costs, have reduced the competitiveness of vehicle exports, resulting in automakers aligning their domestic auto production to more closely match demand in the local market.
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