He Lim, president of China Automobile Dealers Association, said in his speech at the 2013 China Automotive Industry Conference held on the 10th that the domestic auto market has started to pick up this year and entered a stage of steady and rational growth. However, as the production capacity of automobiles exceeds demand, the domestic auto market should not be too optimistic in the next few years.
He Lim pointed out that it must be seen that the current domestic automobile production capacity is far greater than the market demand. The capacity of automobile manufacturers to expand under the driving force of high market growth in 2009 and 2010 has been completed and put into production. The release of these capacities has put a lot of pressure on the market, especially dealers.
He believes that from the perspective of the development of China's automobile industry, it can be said that it is mixed and full of challenges. First, the development of automobiles has brought great pressure on environmental protection, transportation, and energy. Local policies that restrict automobile consumption such as purchase restrictions, restrictions, and restrictions have gradually spread to more large and medium-sized cities. Second, domestic manufacturers and imported auto suppliers are expected to over-represent the domestic auto market, and excessive production capacity, price wars may break out at any time. Third, the endogenous power of the auto market is insufficient. The performance of second-hand vehicles is small and the circulation is not smooth. The development of auto finance services such as auto consumer credit and auto financing leasing lags behind. Fourth, the car scrapping update is not strong. These factors will restrict the sustainable development of China's auto market.
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