By Tong Na

In 2009, China's total auto sales volume has reached 13.64 million sets, up 46 percent, and the sales revenue reached RMB2.08 trillion yuan, up 21 percent. We shall see that just because of the favorable performance in 2009, China's auto market has realized a great leap for the first time and become the largest auto market in the world. In this sense, Chinese market has become the most important increment market of global auto enterprises. For transnational auto enterprises, the significance of China's auto market has become more and more prominent.

Imported auto market is an important part for China's overall auto market. In 2009, with the economic rally and the recovery of consumption confidence, China's imported auto market has witnessed rapid increase in the whole during the adaption to market change and the variation on such policies as consumption tax adjustment.

In 2009, China's customs auto import reached 419,000 sets, only increasing by 2.8 percent than that of 2008, but the volume of registered plates of imported autos reached 353,000 sets, up 30.9 percent year on year. In 2010, under the expectation of the macro-economy keeping a stable and rapid development, with the increasingly growth of China's overall auto market and increasingly upgraded consumption structure, China's imported auto market will go on keeping the favorable development situation. It is estimated that the volume of registered plates of imported autos will reach 420,000 sets, up around 20 percent.

Ding Hongxiang, President and CEO of China Automobile Trading Co., Ltd, believed that, presently, China's imported auto market shows five major features:

In the first half of a year, the course of de-inventory is completed in the imported auto market and the inventory begins to be filled again in the second half of the year. Impacted by the depressing market in the end of 2008, the customs imported volume decreased greatly in the first half of 2009, and the imported volume was lower than the volume of registered plates. The market is featured with de-inventory. After the market recovered, suppliers increased the purchasing quantity, and since the second half of 2009, the imported volume has recovered month by month, and exceeded the volume of registered plates. In December, the imported volume hit a new high with 62,000 sets.

The growth rate of imported autos has seen a slowdown and is more moderate compared with that of homemade autos. In 2009, the volume of registered plates of imported autos reached 353,000 sets, up 30.9 percent year on year, and compared with the growth rate of over 40 percent for the past consecutive 3 years, the growth rate of the imported auto market in 2009 has decreased obviously.

SUV's leading position in the imported auto market continues to be reinforced. In 2009, the year-on-year growth rate of imported SUV was 37.2 percent, ranking No.1 on the growth rates of various imported auto types. Most of the increment in the imported auto market is sourced from the auto type of SUV. The market share of imported SUV takes up 54.8 percent in the overall imported auto market, and SUV's leading position in the imported autos has been strengthened further.

The emission structure of imported autos has changed a lot, which has influenced the market performance of different brands and auto types further. In September, 2008, the adjustment of the policy on consumption tax has made the import cost of 3.0-4.0L auto types increased by 13.3 percent and 4.0L-above increased by 33.3 percent. The emission structure of imported autos has changed a lot. The imported volume of those autos with moderate emission as 3.0L-below has increased greatly while 3.0L-above ones have decreased. In order to adapt to the market variation caused by the policy adjustment, transnational auto companies have successively adjusted the structure of their products launched in China. The year of 2009 becomes a year of product adjustment. The product adjustment is accelerated, and those brands adjusted timely have witnessed a higher increase.

The secondary and third-class market has developed rapidly and realized new increment. In 2009, volume of registered plates of imported autos in the secondary and third-class market occupied 53 percent of the total volume, over half full already, and the growth rate has reached 39.3 percent and 32.8 percent respectively, both of which have surpassed the growth rate of the overall market. The consumption demand cultivated by economically rapid growth over several years has been released rapidly in the secondary and third-class market, which has brought new and considerable increment to the market.

Expecting 2010, Ding Hongxiang believed that the imported auto market would go on keeping favorable development situation, however, we shall be cautiously optimistic, and pay attention to risk control. He believed that after China's auto market experienced the "blowout"-styled rapid growth in 2009, related governmental department has made a little adjustment on part of policies for advancing the auto market, for example, the policy of "halving the purchase tax". With the decrease of policy effect and the increase of the base of the market itself, it's possible that the growth rate of China's overall auto market will be slow down in 2010. In terms of imported auto, if the macro economy can realize the target of stable and rapid development, driven by the increasingly upgraded consumption construction, the imported auto market will continue to keep a favorable development situation. It is estimated that the volume of registered plates of imported autos will reach 420,000 sets, up around 20 percent in 2010. And the imported auto products will go on being adjusted towards moderate emission, and the decrease of those autos with high emission will be slowed down. The market growth rate in the first-class city will recover while the secondary and third-class market will go on keeping a rapid growth.

In allusion to the development trend of the imported auto market in 2010, Ding Hongxiang has concluded the operation strategies on imported autos from such aspects as market, product, channel, brand and price. He suggested that during the operation course for imported auto brands, what shall be done is to formulate target plan rationally and make a timely adjustment in accordance with market variation; to adjust product structure complying with the moving-down trend on emission structure, strengthen the research on SUV segmented market and other segmented markets on top-end, custom-tailoring, personality, sports, environmental protection and so on, and seek new market opportunities; to improve distributors' managing level and profit capability, and promote the sustainable development of distribution network; and to fix reasonable price and keep the price stable.