China Auto Show: A glimpse into the future
A SIGHT TO BEYOND: The latest expo showcased a total of 1,125 vehicles including 120 new models.
China’s highly popular auto expo, the 2012 Beijing International Automotive Exhibition touted as the largest in the republic held from April 27 till May 2 stands testament to the paradigm shift for the global automobile industry from gas guzzling prototypes to the latest in ‘new energy’ vehicles.
The latest expo showcased a total of 1,125 vehicles including 120 new models — 36 from international assemblers and 84 from Chinese car makers. The auto expo which is held once every two years at alternating venues between Beijing and Shanghai, is considered the pulse of the automotive industry that showcases the latest evolutions in the rapidly transforming global automotive scenario.
This year, the highly vibrant expo upped the ante in terms of assemblers showcasing 74 ‘concept’ vehicles, highlighting new styling and product features that may be used in the cars of the future and 88 new energy vehicles to the ‘wow’ and ‘ohhs’ from visitors and exhibitors alike taking up a massive 230,000 square metres of floor space.
BizHive Weekly reporter Justin Yap who attended the massive expo takes readers on a tour amidst the the hustle and bustle which indicates that this venue is indeed the pulse of the industry choc a bloc full of the who’s who in attendance. A harbinger of what’s in store as new arrivals in Malaysian shores in the near future.
China maintains its lead as the largest global car market. Whether held in Shanghai or in Beijing, the international automotive event has rapidly become the most important new car show on the planet.
With an annual sales of 18 million cars each year, doubling the US market, China is already the world’s largest market. Some analysts have forecasted that the numbers could further rise to 30 million or higher by 2020. As such, every global automaker is targeting China for its future success, if not outright survival.
“If sheer-size is any indication of a good auto show, this year’s Beijing International Auto Exhibition is the best. Although the recent Frankfurt Motor Show saw many exciting unveils, the auto show going on now in Beijing boasts the largest number of cars on display and the greatest number of guests,” analyst JianXing Jia told the BizHive Weekly during his visit.
“China has emerged as the largest car market since 2009, so it’s no surprise that its auto show would contain some gems specific to Chinese culture. Some of this year’s models are impressive for their high level of new technologies and their following of the current trend of ‘Thinking Green’,” said Jia.
First quarter passenger car sales in China may have been flat, but that does not seem to have dampened the enthusiasm for the 2012 Beijing Auto Show. “Sales of luxury vehicles continue, though at a slower pace due to increases in petrol prices, with more and more car companies looking to expand their profile in the country,” Jia pointed out.
According to China Association of Automobile Manufacturers (CAAM), the luxury sport utility vehicle (SUV) market had dominated sales in China with Porsche, Lamborghini, Bentley, Maserati, Audi, BMW, Mercedes-Benz, Infiniti, Mazda and Ford building their SUVs locally in the last few years.
Last year, about 1.6 million SUVs were sold in China while the total new car sales for 2011 was a massive 18.5 million units. “That was due to government tax breaks (which recently ended), though sales of local brand small cars and mini vans still make up almost half the vehicles sold. However, they are rarely seen in other countries due to their oddball designs and patchy build quality,” Jia explained further.
Akio Toyoda, Toyota president
Toyota president Akio Toyoda told reporters during a media conference that the growth of China’s car market was unprecedented in its speed, as he unveiled a new hybrid model for the country of 1.3 billion people.
“In 2009, the Chinese car market surpassed the US to grow into the world’s largest market. The speed in which it did so was unlike any other ever experienced,” he said. Akio further pointed out that China has pledged to invest more than US$14 billion to develop the technology and infrastructure for clean energy cars in a bid to have more than five million on the road by 2020.
However, analysts warned it might still take a long time for the Asian nation to fully embrace an electric future. “International car makers are all trying to appease the government by showing they are indeed bringing electric vehicles to China,” said ISH Global Insight analyst Namrita Chow.
“Almost every international automaker has announced plans for electric vehicles in China but almost all are equally as sceptical of volume sales,” Chow shared.
The Beijing International Exhibition Centre’s 230,000sq m space played host to 120 global unveils, including a Lamborghini luxury SUV concept, the Mercedes Concept Style Coupe (CSC) — a svelte four-door previewing the CLA production car that hopes to emulate the success of its bigger CLS brother and a special-edition Range Rover Evoque by Victoria Beckham.
Others showcased included domestic players such as SAIC, Dongfeng, FAW, Changan, BAIC, GAC, Great Wall, Cherry, JAC and BYD, not to omit renowned international players such as Ford, Nissan, Toyota, Honda as well as exotic car manufacturers Rolls Royce, Ferrari, Maserati and the likes.
Visitors left the expo with baited breaths and sweet dreams of being able to own their own glorious ‘chariots’ of choice.