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China - New Cars 0099 - 0358 - 2010
Datamonitor. This profile is a licensed product and is not to be photocopied Page 1
INDUSTRY PROFILE
New Cars in
China
Reference Code: 0099-0358
Publication Date: October 2011
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EXECUTIVE SUMMARY
China - New Cars 0099 - 0358 - 2010
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EXECUTIVE SUMMARY
Market value
The Chinese new cars market grew by 24% in 2010 to reach a value of $178.7 billion.
Market value forecast
In 2015, the Chinese new cars market is forecast to have a value of $383 billion, an increase of 114.3%
since 2010.
Market volume
The Chinese new cars market grew by 21.2% in 2010 to reach a volume of 11.9 million units.
Market volume forecast
In 2015, the Chinese new cars market is forecast to have a volume of 22.8 million units, an increase of
92.1% since 2010.
Market segmentation
China accounts for 40.3% of the Asia-Pacific new cars market value.
Market share
Shanghai Motor is the leading player in the Chinese new cars market, generating a 27.9% share of the
market's volume.
Market rivalry
Rivalry within the new cars market has been intensified, as a consequence of recent economic turbulence
and the presence of strong, international incumbents.
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CONTENTS
China - New Cars 0099 - 0358 - 2010
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TABLE OF CONTENTS
EXECUTIVE SUMMARY 2MARKET OVERVIEW 7
Market definition 7Research highlights 8Market analysis 9
MARKET VALUE 10MARKET VOLUME 11MARKET SEGMENTATION 12MARKET SHARE 13FIVE FORCES ANALYSIS 14
Summary 14Buyer power 15Supplier power 16New entrants 17Substitutes 18Rivalry 19
LEADING COMPANIES 20Chongqing Changan 20China FAW Group Corporation 21Hyundai Motor Company 22SAIC Group 26
MARKET FORECASTS 28Market value forecast 28Market volume forecast 29
MACROECONOMIC INDICATORS 30APPENDIX 32
Methodology 32Industry associations 33
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CONTENTS
China - New Cars 0099 - 0358 - 2010
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Related Datamonitor research 33Disclaimer 34
ABOUT DATAMONITOR 35Premium Reports 35Summary Reports 35Datamonitor consulting 35
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CONTENTS
China - New Cars 0099 - 0358 - 2010
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LIST OF TABLES
Table 1: China new cars market value: $ billion, 200610 10Table 2: China new cars market volume: thousand units, 200610 11Table 3: China new cars market segmentation: % share, by value, 2010 12Table 4: China new cars market share: % share, by volume, 2010 13Table 5: Chongqing Changan: key facts 20Table 6: China FAW Group Corporation: key facts 21Table 7: Hyundai Motor Company: key facts 22Table 8: Hyundai Motor Company: key financials ($) 23Table 9: Hyundai Motor Company: key financials (KRW) 24Table 10:
Hyundai Motor Company: key financial ratios 24
Table 11: SAIC: key facts 26Table 12: China new cars market value forecast: $ billion, 201015 28Table 13: China new cars market volume forecast: thousand units, 201015 29Table 14: China size of population (million), 200610 30Table 15: China gdp (constant 2000 prices, $ billion), 200610 30Table 16: China gdp (current prices, $ billion), 200610 30Table 17: China inflation, 200610 31Table 18: China consumer price index (absolute), 200610 31Table 19: China exchange rate, 200610 31
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CONTENTS
China - New Cars 0099 - 0358 - 2010
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LIST OF FIGURES
Figure 1: China new cars market value: $ billion, 200610 10Figure 2: China new cars market volume: thousand units, 200610 11Figure 3: China new cars market segmentation: % share, by value, 2010 12Figure 4: China new cars market share: % share, by volume, 2010 13Figure 5: Forces driving competition in the new cars market in China, 2010 14Figure 6: Drivers of buyer power in the new cars market in China, 2010 15Figure 7: Drivers of supplier power in the new cars market in China, 2010 16Figure 8: Factors influencing the likelihood of new entrants in the new cars market in China, 2010 17Figure 9: Factors influencing the threat of substitutes in the new cars market in China, 2010 18Figure 10:
Drivers of degree of rivalry in the new cars market in China, 2010 19
Figure 11: Hyundai Motor Company: revenues & profitability 25Figure 12: Hyundai Motor Company: assets & liabilities 25Figure 13: China new cars market value forecast: $ billion, 201015 28Figure 14: China new cars market volume forecast: thousand units, 201015 29
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MARKET OVERVIEW
China - New Cars 0099 - 0358 - 2010
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MARKET OVERVIEW
Market defini t io n
The new cars market consists of the initial retail sale of passenger cars. The market value is calculated atretail selling price (RSP) and the market volume is given in terms of units sold. Any currency conversions
used in this report have been calculated at constant 2010 annual average exchange rates.
For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New
Zealand, Singapore, South Korea, Taiwan, and Thailand.
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MARKET OVERVIEW
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Research high l ights
The Chinese new cars market had total revenue of $178.7 billion in 2010, representing a compound
annual growth rate (CAGR) of 21.7% between 2006 and 2010.
Market consumption volumes increased with a CAGR of 23.1% between 2006 and 2010, to reach a total
of 11.9 million units in 2010.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 16.5% for the five-
year period 2010 - 2015, which is expected to drive the market to a value of $383 billion by the end of
2015.
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MARKET OVERVIEW
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Market analysis
In 2009 and 2010, the Chinese new cars market experienced strong, double-digit growth. After a
deceleration in 2011, this strong growth is predicted to continue to the end of the forecast period.
The Chinese new cars market had total revenue of $178.7 billion in 2010, representing a compound
annual growth rate (CAGR) of 21.7% between 2006 and 2010. In comparison, the Japanese market
declined with a compound annual rate of change (CARC) of -0.9%, and the Indian market increased with
a CAGR of 23.8%, over the same period, to reach respective values of $138.1 billion and $48.5 billion in
2010.
Market consumption volumes increased with a CAGR of 23.1% between 2006 and 2010, to reach a total
of 11.9 million units in 2010. The market's volume is expected to rise to 22.8 million units by the end of
2015, representing a CAGR of 13.9% for the 2010-2015 period.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 16.5% for the five-
year period 2010 - 2015, which is expected to drive the market to a value of $383 billion by the end of2015. Comparatively, the Japanese and Indian markets will grow with CAGRs of 0.7% and 22.6%
respectively, over the same period, to reach respective values of $142.9 billion and $134.5 billion in 2015.
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MARKET VALUE
China - New Cars 0099 - 0358 - 2010
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MARKET VALUE
The Chinese new cars market grew by 24% in 2010 to reach a value of $178.7 billion.
The compound annual growth rate of the market in the period 200610 was 21.7%.
Table 1: China new cars market value: $ billion, 200610
Year $ billion CNY billion billion % Growth
2006 81.4 552.1 61.3
2007 94.7 642.1 71.3 16.3%
2008 98.5 667.6 74.2 4.0%
2009 144.1 976.9 108.5 46.3%
2010 178.7 1,211.6 134.6 24.0%
CAGR: 200610 21.7%
Source: Datamonitor D A T A M O N I T O R
Figure 1: China new cars market value: $ billion, 200610
Source: Datamonitor D A T A M O N I T O R
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MARKET VOLUME
China - New Cars 0099 - 0358 - 2010
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MARKET VOLUME
The Chinese new cars market grew by 21.2% in 2010 to reach a volume of 11,871.5 thousand units.
The compound annual growth rate of the market in the period 200610 was 23.1%.
Table 2: China new cars market volume: thousand units, 200610
Year thousand units % Growth
2006 5,175.8
2007 6,297.9 21.7%
2008 6,755.8 7.3%
2009 9,795.9 45.0%
2010 11,871.5 21.2%
CAGR: 200610 23.1%
Source: Datamonitor D A T A M O N I T O R
Figure 2: China new cars market volume: thousand units, 200610
Source: Datamonitor D A T A M O N I T O R
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MARKET SEGMENTATION
China - New Cars 0099 - 0358 - 2010
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MARKET SEGMENTATION
China accounts for 40.3% of the Asia-Pacific new cars market value.
Japan accounts for a further 31.2% of the Asia-Pacific market.
Table 3: China new cars market segmentation: % share, by value, 2010
Category % Share
China 40.3
Japan 31.2
India 10.9
South Korea 6.6
Rest of Asia-Pacific 11.0
Total 100%
Source: Datamonitor D A T A M O N I T O R
Figure 3: China new cars market segmentation: % share, by value, 2010
Source: Datamonitor D A T A M O N I T O R
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MARKET SHARE
China - New Cars 0099 - 0358 - 2010
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MARKET SHARE
Shanghai Motor is the leading player in the Chinese new cars market, generating a 27.9% share of the
market's volume.
FAW accounts for a further 12.8% of the market.
Table 4: China new cars market share: % share, by volume, 2010
Company % Share
Shanghai Motor 27.9%
FAW 12.8%
Chongqing Changan 6.0%
Beijing Hyundai 5.9%
Other 47.4%
Total 100%
Source: Datamonitor D A T A M O N I T O R
Figure 4: China new cars market share: % share, by volume, 2010
Source: Datamonitor D A T A M O N I T O R
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FIVE FORCES ANALYSIS
China - New Cars 0099 - 0358 - 2010
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FIVE FORCES ANALYSIS
The new cars market will be analyzed taking car manufacturers as players. The key buyers will be taken
as consumers and fleet operators, and suppliers of commodity items, such as metals as the key
suppliers.
Summary
Figure 5: Forces driving competition in the new cars market in China, 2010
Source: Datamonitor D A T A M O N I T O R
Rivalry within the new cars market has been intensified, as a consequence of recent economical
turbulences and due to presence of strong, international incumbents.
The new cars market has a large number of buyers. Manufacturers have invested significantly in brand
building. Whilst switching costs are low and buyers are price-sensitive, this brand power means buyer
power is weakened. Key inputs include commodities like steel, whose price may be difficult for
manufacturers to control, and other inputs such as fabricated components and labor. Although there are
high capital requirements for viable manufacturing scale, as the market shows signs of recovering from
the recent economic downturn, incumbents may face more threat from new entrants. Substitutes such as
used cars and public transport offer a strong threat to car makers. Concentration within particular
geographic regions can be quite high, due to years of consolidation that have left relatively few major
players.
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FIVE FORCES ANALYSIS
China - New Cars 0099 - 0358 - 2010
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Buyer powerFigure 6: Drivers of buyer power in the new cars market in China, 2010
Source: Datamonitor D A T A M O N I T O R
The new cars market will be analyzed taking manufacturers as players and end-users, both consumers
and fleet operators, as buyers. This assumes that the intermediaries (dealers) are transmitting end-user
demand fairly reliably to manufacturers. The new cars market offers a great deal of choice for customers,
with a variety of manufacturers making products with high levels of differentiation. For many buyers, who
are price-sensitive, switching costs are low. However, manufacturers have invested heavily in brand
building, meaning buyer power is weakened. This market is essentially a polypsony, with a large number
of vehicles being sold to an equally large number of consumers, none of whom have a particularly large
market share. This reduces buyer power. Car leasing companies offer a partial exception to this. Through
bulk purchasing and contractual arrangements, favorable prices can be obtained, along with an enhanced
degree of buyer power. Overall, buyer power in the new cars market is assessed as moderate.
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FIVE FORCES ANALYSIS
China - New Cars 0099 - 0358 - 2010
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Suppl ier powerFigure 7: Drivers of supplier power in the new cars market in China, 2010
Source: Datamonitor D A T A M O N I T O R
Key inputs required by car manufactures include commodity items, such as metals, as well as more
differentiated input such as fabricated components, produced by other companies rather than being
manufactured in-house. There is often little to distinguish between suppliers, with raw materials offering
low differentiation. This reduces buyer power somewhat. Despite this, the high importance of the quality
of raw materials and components to the car manufacturers (particularly when safety-critical) can enhance
supplier power. Manufacturers margins have been affected by the global fluctuating price of raw
materials, such as steel and aluminum, during recent years. The upstream competitive landscape is
relatively fragmented, although recent consolidation in the steel industry could boost supplier power.
Typical suppliers are likely to sell to a wide variety of manufacturing companies, with the car market likely
to be contributing only a small share of total supplier revenues. This further strengthens the position of
suppliers. Overall, supplier power is moderate.
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FIVE FORCES ANALYSIS
China - New Cars 0099 - 0358 - 2010
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New entrantsFigure 8: Factors influencing the likelihood of new entrants in the new cars market in China,
2010
Source: Datamonitor D A T A M O N I T O R
It is relatively difficult for new players to directly enter a particular countrys market due to the importance
of brand strength and reputation within the new cars market. Those that succeed often do so through the
introduction of successful foreign brands. Due to the high fixed costs in car design and manufacture, as
well as the economies of scale gained from mass production, new start-up companies are rare: the capital
requirements for a manufacturing facility of feasible scale are high. Additionally, many of the major new
car markets have faced recession, with buyers avoiding expensive purchases such as a new car. The
continuing existence of a government scrappage scheme and the strong growth experienced in recent
years may prove attractive for new entrants. Nevertheless, the presence of large, well-established brands
and high fixed costs mean the threat of new entrants is assessed as moderate overall.
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FIVE FORCES ANALYSIS
China - New Cars 0099 - 0358 - 2010
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Subst i tutes Figure 9: Factors influencing the threat of substitutes in the new cars market in China, 2010
Source: Datamonitor D A T A M O N I T O R
The main substitutes threatening players in the new cars market are used cars, alternative forms of
personal transport, and public transport. Auto manufacturers totally committed to conventionally-powered
cars may see hybrid powered vehicles as a threat. These are often cheaper alternatives, and offer a more
environmentally friendly option, which is generally rewarded by governments, i.e. through lower taxes.
Public transport, and substitutes, such as cycles, can reduce the effect of volatile fuel prices for the user.
However, end-users may also find them less convenient, less reliable, and less significant as status
symbols. Overall, the threat from substitutes - particularly in countries affected by recession and with high
consumer awareness of environmental factors - is strong.
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FIVE FORCES ANALYSIS
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RivalryFigure 10: Drivers of degree of rivalry in the new cars market in China, 2010
Source: Datamonitor D A T A M O N I T O R
A relatively small number of large companies dominate the new cars market, with FAW and Chongqing
Changan, holding a strong market position. The market is tending towards concentration, with
international players, such as GM or Volkswagen, through joint ventures with local incumbents, holding a
strong market position. Rivalry is reduced somewhat due to a degree of differentiation, with several
different segments within the market, such as luxury and budget. Companies utilize a high level of design
and marketing to promote their product. The Chinese new cars market has not been as affected as many
by the economic downturn. After a deceleration in 2008, the market has experienced double digit growth
in recent years. Despite this, rivalry in the new cars market is strong.
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LEADING COMPANIES
China - New Cars 0099 - 0358 - 2010
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LEADING COMPANIES
Chongqing Changan
Table 5: Chongqing Changan: key facts
Head office: No. 199 Wuhong Road, Yubei District, Chongqing, CHN
Telephone: 0086 23 6759 9888 8042
Fax: 0086 23 6785 2882
Website: www.globalchana.com
Source: company website D A T A M O N I T O R
Chongqing Changan (Changan) began manufacturing cars in 1984, although it was first established asthe Shanghai Foreign Gun Bureau in 1862. It is headquartered in Chongqing, China, with production
facilities in Hebei, Jiangsu, Jiangxi, and Beijing, as well as overseas factories in Russia, Malaysia,
Ukraine, Vietnam, and Nigeria. It also has R&D centers in the US, the UK, and Japan. Its workforce is
50,000 strong.
Changans product range currently includes passenger cars, light trucks, and people carriers. In 2009, it
launched an electric car (Benni Mini); the company has also demonstrated a hydrogen-powered engine.
Changan has joint venture agreements with automotive manufacturers such as PSA and Ford.
Key Metrics
As a privately held entity, Chongqing Changan is not obliged to publish its financial results.
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LEADING COMPANIES
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China FAW Group Corporat ion
Table 6: China FAW Group Corporation: key facts
Head office: No 2259 Dongfeng Street, Changchun 130011, CHN
Telephone: 86 431 85900715
Fax: 86 431 85730707
Website: www.faw.com
Source: company website D A T A M O N I T O R
China FAW Group Corporation (FAW Group) designs, develops, manufactures, and sells passenger cars,
trucks, and buses. The group operates in Asia, Africa, North America, and Europe.
The group offers products such as commercial trucks, which include light, medium, and heavy-duty
trucks; buses and coaches, which include municipal buses, luxury tourist coaches, and custom bus
chassis; passenger cars offered under the brands such as Hongqi, Besturn, and VITA Sedans; mini
vehicles; sport utility vehicles (SUVs) and pickup trucks.
FAW Group also offers components and parts such as diesel engine, gasoline engine, compressed
natural gas (CNG) engine, truck transmission, car transmission, axles, sand casting, sheet molding, die
casting, stamping die, casting mold, steel wheels, engine parts, accessories, air pumps, radiators, brake
pads, brakes, steering gears, water pumps and hubs.
The group's production bases are located in northeast China's Jilin and Heilongjiang provinces, east
China's Shandong province and Tianjin municipality, south China's Hainan province, and southwest
China's Sichuan and Yunnan provinces. It has both cold and semi-tropical weather vehicle testing
facilities.
FAW Group operates through 28 wholly owned subsidiaries and holds controlling interest in 18 partially
owned subsidiaries. Its subsidiaries include FAW Jiefang Truck, FAW Bus and Coach, FAW Car, Tianjin
FAW Xiali Automobile, Changchun FAW Sihuan Automobile, Chun Shing Technology Development, FAW
Vehicle Manufacturers, FAW Japan and FAW International are among others. The group also operates
through its joint ventures such as FAW-Volkswagen Automobile, Tianjin FAW Toyota Motor and FAW
Mazda Motor Sales.
Key Metrics
As a privately held entity, FAW Group is not obliged to publish its financial results.
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LEADING COMPANIES
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Hyundai Motor Company
Table 7: Hyundai Motor Company: key facts
Head office: 231 Yangjae-dong, Seocho-gu, Seoul 137 938, KOR
Telephone: 82 2 3464 1114
Local office: Shuntong Road 18, Linhe Industry Development Zone, ShunyiDistrict, Beijing 101300, CHN
Telephone: 0086 10 8453 9888
Fax: 0086 10 8453 8886
Website: worldwide.hyundai.com
Financial year-end: December
Ticker: 5380
Stock exchange: Seoul
Source: company website D A T A M O N I T O R
Hyundai Motor Company (Hyundai) is an automobile manufacturer in Korea. The company is engaged in
the design, development and manufacturing of automobiles. The company is part of the Hyundai Group,
which includes companies with diverse market range including electronics, finance, shipping and
shipbuilding. It primarily operates in Korea, North America, Europe and Asia. Hyundai has over 6,000
sales points and 24 overseas manufacturing plants and distributors in 180 countries worldwide.
The company operates through two business segments: non-financial industry and financial industry.
The non-financial industry segment of Hyundai deals with the design, development, and manufacturing of
automobiles. The company divides this segment into three categories: passenger vehicles, recreational
vehicles, and commercial vehicles. Hyundai's product line-up includes subcompact and compact cars;
mini-vehicles; mid-size, luxury, sports and specialty cars; recreational and sport-utility vehicles; pickup
trucks; minivans; trucks and buses.
In FY2010, the company sold approximately 1,730,696 vehicles which included 657,897 vehicles sold in
South Korea and 1,072,799 vehicles sold through exports. Out of the exports, North America accounted
for 287,796 vehicles, Africa and Middle East accounted for 291,148 vehicles, Latin America accounted for
219,786 vehicles, Asia Pacific accounted 169,771 and Europe accounted 104,298.
The company sells its passenger cars through its Equus, Genesis, Azera, Sonata, Getz, Elantra, Accent,
Genesis Coupe, i10, 120, 130, Grandeur, Centennial, and Santro brands. The company markets its
recreational vehicles under Veracraz, Terracan, Santa Fe, Tucson, H1, Trajet, and Matrix brand names.
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LEADING COMPANIES
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Hyundai markets its commercial vehicles including pickup trucks, minivans, trucks and buses through
Hyundai HD, County, Aero town, Super Aero city, Aero, and Universe brand names.
Hyundai owns and operates three principal automobile production plants in Korea: the Ulsan plant, Asan
and Jeonju. Ulsan is Hyundai's chief production plant and is located on a 5,050,000 square meters site
comprising five independent plants. This plant has over 34,000 employees and its daily average
production capacity is 5,400 vehicles. Asan is an independent automobile production plant with a capacity
of producing 30,000 mid to large size passenger vehicles annually. With a capacity of producing 125,000
units per year, the Jeonju plant is specialized in producing mid-to large-sized buses of 2.5 tons or more
apart from trucks, and specialty vehicles. In addition, the company owns nine overseas manufacturing
plants including two plants in China, two in India, and one each in Alabama, Turkey, Czech Republic,
Russia and Brazil.
Hyundai financial services business provides financing to dealers and their customers for the purchase or
lease of the company's vehicles. The company also provides retail leasing through the purchase of leasecontracts originating from Hyundai dealers.
In China, the company operates primarily through Beijing Hyundai. This is a joint venture between
Hyundai and Beijing Automotive Industry Holding Company, established in 2002. At the time of
preparation of this report, Beijing Hyundai had two factories in China. A third was expected to be
operational by 2012, adding capacity of 400,000 vehicles a year.
Key Metrics
The company recorded revenues of $78,856 million in the fiscal year ending December 2009, an increase
of 14.7% compared to fiscal 2008. Its net income was $2,553 million in fiscal 2009, compared to a netincome of $1,248 million in the preceding year.
Table 8: Hyundai Motor Company: key financials ($)
$ million 2005 2006 2007 2008 2009
Revenues 50,721.6 54,875.0 60,007.9 68,745.8 78,856.1
Net income (loss) 2,025.0 1,315.7 1,450.5 1,248.3 2,553.3
Total assets 22,986.4 22,786.9 25,508.8 27,733.8 30,560.4
Total liabilities 10,008.3 8,948.5 9,815.1 10,790.4 11,567.7Employees 53,218 54,115 55,629 137,000 110,704
Source: company filings D A T A M O N I T O R
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LEADING COMPANIES
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Table 9: Hyundai Motor Company: key financials (KRW)
KRW million 2005 2006 2007 2008 2009
Revenues 58,830,632.0 63,648,025.0 69,601,504.0 79,736,351.0 91,463,064.0
Net income (loss) 2,348,721.0 1,526,063.0 1,682,419.0 1,447,904.0 2,961,509.0
Total assets 26,661,326.0
26,429,958.0 29,586,929.0
32,167,729.0
35,446,135.0
Total liabilities 11,608,362.0
10,379,130.0 11,384,298.0
12,515,438.0
13,417,112.0
Source: company filings D A T A M O N I T O R
Table 10: Hyundai Motor Company: key financial ratios
Ratio 2005 2006 2007 2008 2009
Profit margin 4.0% 2.4% 2.4% 1.8% 3.2%
Revenue growth 10.8% 8.2% 9.4% 14.6% 14.7%
Asset growth 8.7% (0.9%) 11.9% 8.7% 10.2%
Liabilities growth 2.4% (10.6%) 9.7% 9.9% 7.2%
Debt/asset ratio 43.5% 39.3% 38.5% 38.9% 37.9%
Return on assets 9.2% 5.7% 6.0% 4.7% 8.8%
Revenue per employee $953,091 $1,014,044 $1,078,716 $501,794 $712,315
Profit per employee $38,051 $24,313 $26,075 $9,112 $23,064
Source: company filings D A T A M O N I T O R
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LEADING COMPANIES
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Figure 11: Hyundai Motor Company: revenues & profitability
Source: company filings D A T A M O N I T O R
Figure 12: Hyundai Motor Company: assets & liabilities
Source: company filings D A T A M O N I T O R
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LEADING COMPANIES
China - New Cars 0099 - 0358 - 2010
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SAIC GroupTable 11: SAIC: key facts
Head office: No 489 Wei Hai Road, Shanghai 200041, CHN
Telephone: 0086 21 22011688
Fax: 86 21 22011188
Website: www.saicgroup.com
Financial year-end: December
Source: company website D A T A M O N I T O R
The Shanghai Automotive Industry Corporation Group (SAIC Group) is a government-owned company,
which develops, manufactures and sells passenger cars, commercial vehicles, and related components.
The group primarily operates in the US, Europe, and Asia.
The group provides its products and services through three divisions: vehicle; parts and components; and
service and trade.
The SAIC Group offers both passenger and commercial vehicles, which include buses, heavy duty trucks,
tractors, motor cycles, excavators, and dozers.
The group offers parts and components, including trimming, power train, chassis, electronic, air
conditioning, stamped and hot working parts.
The SAIC Group also offers auto logistics including import and export logistic services; international
trading business including vehicle trading and components trading; auto services including auto clubs and
rental, auto related accessories; production and non-production materials trading; financing and leasing
business to traffic and transportation, construction machinery, and production equipment; retail of
vehicles; and investment activities.
The group also provides IT services including business process planning, consulting, technical research
and development, project implementation, operational support, and system integration services through
its subsidiary, Shanghai Automotive Information Systems. The group is also engaged in other businesses
such as hotel management; integrated services for environmental protection of enterprises; leasingbusiness of industrial real estate; and asset management.
The group holds 78.94% of the equity interest of SAIC Motor Corporation and 60.10% of HUAYU
Automotive Systems.
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LEADING COMPANIES
China - New Cars 0099 - 0358 - 2010
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SAIC Motor Corporation is engaged in research and development, production and sales of vehicles,
including passenger and commercial vehicles; and components, including power train, chassis, electronic
and electric parts that are closely related with the vehicle development; and the auto financial business
that is closely related with the automotive business.
HUAYU Automotive Systems is an independent automotive components business, which operates
through six business divisions such as interior and exterior trimming; metal forming and dies; function
parts; electric and electronics parts; hot-worked parts; and new energy parts covers research and
development, production and sales of automotive components.
The group also operates though other subsidiaries such as Shanghai Tractor & Internal Combustion
Engine, Shanghai Automotive Forging, Shanghai Xingfu Motorcycle, Shanghai Sandmann Foundry,
Shanghai Automotive Industry Sales, Shanghai Automotive Information Systems, Shanghai Automotive
Group (Beijing) and Shanghai Automotive Industry Development Company.
Key Metrics
As a privately held entity, the SAIC Group is not obliged to publish its financial results.
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MARKET FORECASTS
China - New Cars 0099 - 0358 - 2010
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MARKET FORECASTS
Market value forecast
In 2015, the Chinese new cars market is forecast to have a value of $383 billion, an increase of 114.3%since 2010.
The compound annual growth rate of the market in the period 201015 is predicted to be 16.5%.
Table 12: China new cars market value forecast: $ billion, 201015
Year $ billion CNY billion billion % Growth
2010 178.7 1,211.6 134.6 24.0%
2011 190.8 1,293.7 143.7 6.8%
2012 239.4 1,623.2 180.3 25.5%
2013 280.6 1,902.2 211.3 17.2%
2014 328.8 2,228.8 247.6 17.2%
2015 383.0 2,596.2 288.5 16.5%
CAGR: 201015 16.5%
Source: Datamonitor D A T A M O N I T O R
Figure 13: China new cars market value forecast: $ billion, 201015
Source: Datamonitor D A T A M O N I T O R
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MARKET FORECASTS
China - New Cars 0099 - 0358 - 2010
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Market volume forecast
In 2015, the Chinese new cars market is forecast to have a volume of 22,802.9 thousand units, an
increase of 92.1% since 2010.
The compound annual growth rate of the market in the period 201015 is predicted to be 13.9%.
Table 13: China new cars market volume forecast: thousand units, 201015
Year thousand units % Growth
2010 11,871.5 21.2%
2011 12,275.7 3.4%
2012 15,197.0 23.8%
2013 17,457.8 14.9%
2014 20,017.9 14.7%
2015 22,802.913.9%
CAGR: 201015 13.9%
Source: Datamonitor D A T A M O N I T O R
Figure 14: China new cars market volume forecast: thousand units, 201015
Source: Datamonitor D A T A M O N I T O R
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MACROECONOMIC INDICATORS
China - New Cars 0099 - 0358 - 2010
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MACROECONOMIC INDICATORS
Table 14: China size of population (million), 200610
Year Population (million) % Growth
2006 1,311.0 0.6%
2007 1,317.9 0.5%
2008 1,324.7 0.5%
2009 1,331.4 0.5%
2010 1,338.0 0.5%
Source: Datamonitor D A T A M O N I T O R
Table 15: China gdp (constant 2000 prices, $ billion), 200610
Year Constant 2000 Prices, $ billion % Growth
2006 2,407.2 15.3%
2007 2,822.5 17.3%
2008 3,148.9 11.6%
2009 3,440.2 9.3%
2010 3,794.5 10.3%
Source: Datamonitor D A T A M O N I T O R
Table 16: China gdp (current prices, $ billion), 200610
Year Current Prices, $ billion % Growth
2006 2,712.9 20.2%
2007 3,494.2 28.8%
2008 4,520.0 29.4%
2009 4,987.6 10.3%
2010 5,734.6 15.0%
Source: Datamonitor D A T A M O N I T O R
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MACROECONOMIC INDICATORS
China - New Cars 0099 - 0358 - 2010
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Table 17: China inflation, 200610
Year Inflation Rate (%)
2006 1.5%2007 4.8%
2008 5.9%
2009 (0.7%)
2010 3.3%
Source: Datamonitor D A T A M O N I T O R
Table 18: China consumer price index (absolute), 200610
Year Consumer Price Index (2000 = 100)2006 108.6
2007 113.8
2008 120.5
2009 119.6
2010 123.6
Source: Datamonitor D A T A M O N I T O R
Table 19: China exchange rate, 200610
Year Exchange rate ($/CNY) Exchange rate (/CNY)
2006 7.9819 10.0145
2007 7.6172 10.4228
2008 6.9623 10.1875
2009 6.8409 9.5123
2010 6.7788 9.0005
Source: Datamonitor D A T A M O N I T O R
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APPENDIX
China - New Cars 0099 - 0358 - 2010
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APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,analyzed, cross-checked and presented in a consistent and accessible style.
Review of in-house databases Created using 250,000+ industry interviews and consumer surveys
and supported by analysis from industry experts using highly complex modeling & forecasting tools,
Datamonitors in-house databases provide the foundation for all related industry profiles
Preparatory research We also maintain extensive in-house databases of news, analyst
commentary, company profiles and macroeconomic & demographic information, which enable our
researchers to build an accurate market overview
Definitions Market definitions are standardized to allow comparison from country to country. The
parameters of each definition are carefully reviewed at the start of the research process to ensure they
match the requirements of both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest
industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools Datamonitor has developed powerful tools that allow quantitative
and qualitative data to be combined with related macroeconomic and demographic drivers to create
market models and forecasts, which can then be refined according to specific competitive, regulatory
and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and
up-to-date
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APPENDIX
China - New Cars 0099 - 0358 - 2010
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Indu stry associat ions
International Organization of Motor Vehicle Manufacturers
4 rue de Berri, F 75008 Paris, FranceTel.: 0033 1 4359 0013
Fax: 0033 1 4563 8441
http://www.oica.net/htdocs/Main.htm
China Association of Automobile Manufacturers (CAAM)
N 46, Sanlihe Road, Xicheng District Beijing 100823
Tel.: 0086 10 6859 4941
Fax: 0086 10 6859 5243
Related Datamon itor research
Industry Profile
Global New Cars
New Cars in Australia
New Cars in Europe
New Cars in Asia-Pacific
New Cars in Japan
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APPENDIX
China - New Cars 0099 - 0358 - 2010
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Disclaimer
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The facts of this report are believed to be correct at the time of publication but cannot be guaranteed.
Please note that the findings, conclusions and recommendations that Datamonitor delivers will be
based on information gathered in good faith from both primary and secondary sources, whose
accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability
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ABOUT DATAMONITOR
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