By Chang Yanjun
 
In 2009, both China's auto output and sales volume have exceeded 13.6 million sets and have drawn all eyes in the world. The flourish of the market has made more and more families enjoy the convenience brought by the autos to the life. The support of policies plus consumers' great demand on auto purchase has made people being full of positive expectation for the development of the auto market in 2010. In the first month of 2010, the auto output and sales volume gave us a big surprise.

Statistics from China Association of Automobile Manufacturers (CAAM) shows that in January, keeping the rapid growth momentum in December, 2009, China's auto output and sales volume reached 1.6148 million and 1.6642 million sets respectively, increasing 5 percent and 17 percent than that of last month and having a year-on-year growth rate of 143 percent and 124 percent. As the lower output and sales volume over the same period last year, the year-on-year total output and sales volume of autos in January has increased more than twice, and all auto types have increased by more than 70 percent.

CAAM believes that currently, China's overall macro economic situation is positive, residents' livelihood is improving stably, and the demand on auto purchase is great; what's more, driven by the state's various favorable policies in 2009, consumers' demand on autos has been activated. Although the preferential degree on the tax of purchasing autos is not as strong as the one of last year, the government has still implemented a series of promotion policies on auto industry and these policies have driven up the auto consumption; meanwhile, the strong demand of last year continued, and most of the hot-sale products in this January are the orders carried forward from last year. The purchase demand on many kinds of hot-sale auto types emerging in the end of last year has been satisfied in this January to a certain degree. These reasons have urged the auto output and sales volume in January realized a good start.

Additionally, the economic benefit in auto industry is also improving stably. The 17 key automotive enterprises (groups) newsletter of economic indicators shows that the main economic indicators of key enterprises and groups in auto industry increased rapidly, and enterprises' profit level has been elevated commonly. Especially the total volume of profit and tax, among which the tax takes up around 60 percent, has turned the negative growth of last year into the positive growth with the aggregated amount of RMB224.094 billion yuan and the year-on-year growth rate of 68 percent.

The rapid growth of China's auto market in 2009 cannot be realized without the contribution of passenger cars. As the main impetus in China's auto market, both the output and sales volume of passenger cars in January have hit the highest historical record. The output and sales volume of passenger cars in January reached 1.2439 million and 1.3160 million sets, up 4 percent and 18 percent respectively than that of last month and up 134 percent and 113 percent than that of the same period of last year.

When speaking of the drive of the passenger car market towards the whole auto market, we have to talk about the 1.6 L-and-below auto type. Since this January, the preferential tax rate on purchasing the 1.6 L-and-below passenger cars has been adjusted from last year's 5 percent to the current 2.5 percent, and looking into the sales situation of such an auto type in January, a stable operation is basically kept with the monthly output and sales volume of 884,300 and 941,000 sets, up 7 percent and 25 percent than that of last month respectively and a little higher than the overall growth rate of passenger cars. The cross passenger car, as the auto type enjoying benefit from the policies on preferential purchase tax and autos going to the countryside, its growth rate of output and sales volume in January is rapid with the monthly output and sales volume of 245,700 and 252,200 sets, increasing 24 percent and 49 percent respectively than that of last month.

In the passenger car market, the autos with self-owned brands show a spectacular performance with continuing improved market share. In January, the sales volume of the autos with self-owned brands was 647,400 sets, taking up 49 percent of the total sales volume of passenger car, while the data in 2009 was 44 percent. The market share of the autos with self-owned brands has also rose from 30 percent in 2009 to the current 35 percent with the sales volume of 323,000 sets. Among the top tens in terms of the sales volume of cars, there is no lack of the autos with self-owned brands. What's more, BYD F3 ranks No.1 in terms of single monthly sales volume with the performance of 35,600 sets. In 2009, BYD F3 has realized the span from 10,000 sets to 20,000 sets and 30,000 sets, and the hot-sale momentum is going on in 2010.

After the outbreak of international financial crisis, compared with the passenger car market, the commercial auto market was impacted greatly. Based on the obvious recovery on demand in the second half of 2009, the output and sales volume of commercial autos in January, 2010 has realized a rapid growth. In January, the output and sales volume of commercial autos reached 370,800 and 348,200 sets respectively, up 7 percent and 12 percent than that of last month and up 180 percent and 177 percent than that of the same period of last year. Compared with other commercial auto types, the output and sales volume of van products increased more rapidly.

The output and sales volume of many commercial auto enterprises has increased greatly. Beijing Automobile Futon Vehicles Co. Ltd continued the development momentum in 2009. In January, 2010, the auto sales volume reached 51,800 sets, followed by Dongfeng Motor Corporation, China FAW Group Corporation and Anhui Jianghuai Automobile Co., Ltd. Wang Xiaomin, Market Management Department of Shaanxi Automobile Group Co., Ltd, expressed that since the beginning of January, the cargo vehicle market of Shaanxi Automobile Group Co., Ltd initiated rapidly. The front line orders arrived successively with the highest daily record of 758 sets.

Of course, the sales volume of January cannot illuminate the whole year's performance. In 2010, there are still lots of indefinite factors, and the development of auto industry also needs a further observation. But the good performance in the first month provides a favorable opening for the auto output and sales of the whole year. CAAM also expressed that its forecast for the production of 15 million sets autos in 2010 would be invariable.