China Overtakes Germany, US in '08 Auto Output

Shanghai, April 23, 2009: (Gasgoo.com) German auto industry's latest figures show that China overtook Germany and the U.S. last year to have produced the world's biggest number of automobiles, xinhuanet.com reported today.

China became the world's largest car-producer in 2008, with a world market share of 17.2%, outranking Germany (14.7%) and the US (14.6%), the German association of car manufacturers VDMA revealed earlier this week. China's auto output hit 9.42 million units in 2008, up only 6% year on year, the slowest growth in recent years.

In profit, German companies had an 8% increase, the US a loss of 10%, while Chinese carmakers achieved a 30% rise. The sales slump in the U.S. and Europe also highlights the China market, where new cars sales in March reached a record of 1.11 million units thanks to the government's auto stimulus measures.

Recent car sales in China have been boosted by a slew of incentives introduced since the beginning of this year. Taxes have been halved to 5% for cars with engines of 1.6 liters or less. The Chinese government is also subsidizing the purchase of alternative energy vehicles.

While managing to borrow and assimilate the latest global auto-making technologies and expertise, Chinese carmakers have been speeding up the development and production of their own-brand vehicles to grab more shares of the domestic market from their western partners.

European, American and Japanese auto companies, such as Volkswagen, Peugeot Citroen, General Motors, and Toyota Motor, were still competing very much for a market share in China, although the profit outlook was increasingly shrinking.

Sources: autonews.gasgoo.com

Proton Exora to go the export route !

MyTeamCar - Malaysian national automaker Proton, which has launched its first seven-seater multipurpose vehicle, is pinning hopes on the long-awaited model to spur sales and boost exports amid a global economic slump.

The new Exora model marks a turning point in Proton's product range, which previously focused only on passenger cars, and could be used as a platform to develop other high-end commercial variants, said managing director Syed Zainal Abidin.

Proton believes there will be "overwhelming response" for the 1.6l engine vehicle due to its competitive pricing below RM76,000 - the cheapest in the market - and improved features, he said.

The automaker has received 2,500 bookings ahead of its official launch, he said.

"Despite the current (economic) situation, we believe there will be good spinoffs ... it will help to stimulate a lot of interest not only for the company but for the whole industry," he told The Associated Press at a recent media preview.

Syed Zainal said the Exora will make its debut in Indonesia in July and in Thailand by the year-end, before being exported to the Middle East next year.

"This is a starting point about the way we want to go forward," he said.

"We set our sight very clear that the domestic (market) cannot be our champion. Every car that we produce must cater for exports ... our survival goes beyond the shores of Malaysia."

Proton, which returned to the black in the fiscal year ended Mar 2008, is hoping the Exora will help to sustain its profitability as the economic downturn hits demand globally.

Proton's exports remain minimal and sales are largely derived in Malaysia, Southeast Asia's biggest passenger car market. New vehicle sales in the domestic market fell 4.8% in February from a year earlier, the fifth straight month of decline.

Despite the weak market, Proton aims to sell 2,500 units a month as the vehicle offers value for money with dual airbag, auto cruise, leather seats, DVD player, a navigational system and bluetooth connectivity, he said.

Proton is also working on different prototypes including a pickup model and taxi vehicle based on the Exora platform, he said.

MIMB Investment Bank said Proton appeared to have learnt from past mistakes by improving on interior finishing and the quality of the exterior.

The vehicle's debut also coincides with a government-backed auto scrapping system, in which owners can trade-in vehicles over 10 years old to get a RM5,000 rebate for any Proton new car from this month.

sources from The Star