SHANGHAI -- Dealers in China have good reason to criticize carmakers for burdening them with excessive vehicle stockpiles -- a market dynamic that has forced them to slash prices and swallow losses. But a report released this month by the China Automobile Dealers Association shows that retailers are partially to blame for their predicament. Pictured: Yang Jian is managing editor of Automotive News China.
NEW DELHI -- Weak demand for sleek Jaguars in China battered the latest quarterly profits of its parent Tata Motors, showing that the company lacks agility in a market where the appetite for luxury has ebbed. Tata's net profit for the fiscal fourth quarter fell a worse-than-expected 56 percent. Sales of Jaguar Land Rover vehicles in China, its biggest market, fell 20 percent in the first three months of 2015, when overall car sales in China grew 3.9 percent. Given inventory accumulating on dealership lots, Jaguar Land Rover will need to cut its price tags eventually, whether directly or through discounts offered to China dealers.
SHANGHAI -- If the design of Nissan Motor Corp.'s newest car for China looks in-your-face, over-the-top and brash with no apologies, then so is the latest consumer trend it aims to tap. Daqi, the Chinese term encompassing a desire for status, pomp and harmony, is so yesterday. In today's China, consumer taste is all about baqi, a flamboyant individuality that stands out from the crowd. That is the driving force behind China's coveted up-and-coming younger generation.
TURIN -- General Motors sees "attractive" growth opportunities for diesel-powered vehicles in China, GM President Dan Ammann said. Sales of diesel-powered vehicles will grow, Ammann said on Tuesday, because a diesel is an "intrinsically more efficient engine" than a gasoline engine. "We see attractive growth opportunities [for diesels] in the U.S. and, over time, also in Asia and specifically in China," Ammann told reporters.
Newly minted Chinese millionaires have long heralded their status by buying big, expensive cars such as Porsche's Cayenne SUV. The penchant of rich mainlanders for flaunting their wealth is a big reason that China is set to dethrone the U.S. as the luxury brand's biggest market this year. But after a government crackdown on graft and conspicuous consumption, growth in luxury-car sales is slowing, and Chinese buyers are settling for less opulent models.
In a sign that China's booming stock market is prying open purse strings among the rich, McLaren Automotive said demand is growing for its supercars such as the 3.8 million yuan ($612,500) 650S coupe. Sales and dealer traffic for the past two months have been McLaren's "best ever" in China since entering the country 15 months ago, David McIntyre, the U.K. carmaker's regional director, said, without giving specific numbers.
BYD Co. plans to raise 10 billion yuan ($1.61 billion) in a private A-share placement, people familiar with the matter said, amid a stock-market rally in which the company's Shenzhen-traded shares have almost doubled in value this year. BYD is working with banks such as China International Capital Corp., China Merchants Securities Co., Guosen Securities Co. and UBS Group AG on the plan, said sources who asked not to be named.
HONG KONG -- Private equity firm Warburg Pincus on Wednesday launched a sale of shares worth up to $341 million (2.12 billion yuan) in CAR Inc., China's largest car rental company. CAR Inc. hopes to benefit from a market rally, since its stock price has more than doubled since its initial listing in September.
TOKYO -- Three years ago this September, Japanese automakers learned a nasty lesson about the power of history and nationalism in China. Their sales in the world's No. 1 market plunged amid a violent public backlash against Japanese cars following a territorial row between Tokyo and Beijing. Their market share has yet to recover. Unfortunately for the Japanese automakers, that not-so-distant history of Japan bashing may soon repeat itself. This August marks the 70th anniversary of the end of World War II. Pictured: Hans Greimel is Asia editor of Automotive News
Volvo Car Corp. started exporting S60 sedans built in China to the United States last week as part of its plan to expand sales and market share globally. The vehicles, which are produced at Volvo's plant in the southwest China city of Chengdu, will be transported to Shanghai for shipment to the U.S.