Half domestic automakers to die out in 5 years: experts  

自主品牌汽车被指形象差 专家称5年内一半将被淘汰

中国自主品牌乘用车市场份额连续12个月下滑。来自中汽协的最新数据显示，8月份，自主品牌乘用车占乘用车销售总量的37.13%，比上年同期下降0.99%。轿车方面的下滑态势更为明显，自主品牌轿车销售17.79万辆，同比下降21.09%。[查看全文]

(ECNS) -- China's domestic car market has been suffering declining sales, with half of brands likely to face elimination in the next five years, experts say.

According to China Automobile Industry Association (CAIA) statistics, the sale of domestic sedans in August fell 21.09 percent year-on-year to 177,900 units. Domestic auto sales accounted for 37.13 percent of the total, down 0.99 percent over the same time last year.

While domestic auto sales have been down for 12 consecutive months, foreign brands are gaining momentum, spreading their wings from big cities to smaller ones and from expensive models to cheaper equivalents.

Foreign brands, which previously focused on middle- or high-end models, are producing more and more cars priced at 100,000 yuan ($16,000) or under, grabbing an increasing share of the low-end market from domestic car brands.

What's more, purchase restrictions in big cities set to protect the environment and ease traffic jams further squeeze sales.

CAIA statistics show that after Beijing adopted a lottery system to reduce car purchases in 2010, domestic sales suffered the biggest hit with a nearly 70 percent drop.

Some Chinese car makers have achieved quite a few breakthroughs in design and technology. BYD has been exporting its electric buses to countries in America and Europe. But experts say Chinese are still more likely to choose foreign brands that carry a better image.

"The image of domestic brands doesn't match the progress they've made in the past few years, said senior analyst Zhang Zhiyong, referring to inadequate branding input and the low quality of some domestic cars.

Although the government has implemented a few policies since 2010 such as reducing taxes, encouraging rural residents to buy domestic cars, sales returned to a downward slope after these initiatives were revoked one year later.

CAIA deputy head Dong Yang said half of China's domestic auto brands would be forced out of the market in three to five years.

Zhang said competition is inevitable, as China has more than 20 auto makers while countries in Europe and America have far less. He added that in future, China is likely to host about 10 automakers.

At least one thing has given the industry a lift recently. On October 1, China issued a notice to offer 3,000 yuan ($500) to each purchase of 163 models of green energy cars, including domestic brands such as Chery, Geely and Jianghuai.

Although some say the 3,000 yuan is a drop in the bucket, domestic auto stores in cities such as Xi'an are seeing more customers flowing in.