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Chinese automotive market: How long will the party last?


According to the Roland Berger analysis, private vehicle sales in China will exceed 18 million units by 2015, but growth rates will decline substantially.

The major drivers of future private vehicle market development are rapid GDP growth and rising disposable income. Although China's economy is still expected to grow considerably over the next few years, it will be faced with several significant challenges such as currency appreciation, unsustainable stimulus plans, tighter monetary policy, unemployment and rising labor costs.

There are three main areas of focus for Western automotive suppliers: accurate volume planning, the impact of localization and revisited business models.


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