Growth in car exports from China will slow to roughly ten percent next year, following this year’s exceptionally sharp expansion, as key export markets adopt measures to protect domestic producers. This was stated today by the China Passenger Car Association (CPCA). According to the CPCA, exports rose by 75 percent in the first ten months of this year, Bloomberg news agency reported.
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Chinese carmakers run up against tariffs and weak demand
Chinese carmakers are facing growing pressure in key foreign markets as authorities seek to limit their exports through tariffs or import quotas. At home, they also continue to struggle with weak demand.
“Export growth will slow next year from this year’s exceptionally fast pace to a moderate-to-fast pace,” said CPCA Secretary General Cui Dongshu. He nevertheless pointed to persistently high demand for Chinese cars in the Middle East, which he said will likely be an important driver of growth in Chinese car exports next year.
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Pressure on Volkswagen and Škoda: Why the EU wants to cut Chinese hybrids by more than half
In recent years, Chinese carmakers have significantly strengthened their positions in the domestic market at the expense of foreign competitors. More recently, they have also been making increasingly strong inroads into foreign markets, including Europe. This is causing problems for European manufacturers, such as the German automotive group Volkswagen, which includes Škoda Auto.
EU Trade Commissioner Maroš Šefčovič announced in October that China and the European Union had reached an agreement that could lead to a drop of more than half in exports of Chinese hybrid cars to the EU. Representatives of the European automotive industry accuse China of unfair trade practices. They cite subsidies for Chinese companies, currency manipulation and obstacles that prevent European firms from accessing the Chinese market. Beijing rejects these accusations, highlights the successes of its industry and points to weaknesses in the European economy.
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Source: ČTK
