R. L. Polk & Co. Analysis Shows China Vehicle Market Grew 26 Percent in 2007

R. L. Polk & Co. Analysis Shows China Vehicle Market Grew 26 Percent in 2007

October 09, 2007

Japanese Automakers Lead Growth; Chinese Automakers
Fluctuate

    SOUTHFIELD, Mich., Oct. 9 /Xinhua-PRNewswire/ -- The
passenger vehicle market in China grew 26 percent in the
first half of 2007 according to data released by R. L. Polk
& Co. (Polk).  Excluding vans and pick-up trucks, Polk
forecasts an annual total registration volume of 4.7
million passenger vehicles by the end of 2007.  The
market's annual growth rate has been above 20 percent since
2004.    

    (Photo:
http://www.newscom.com/cgi-bin/prnh/20071008/CLM105 )

    Toyota showed the highest growth in China with a 72.6
percent increase in vehicle registrations year-over-year
(YOY).   Honda and Nissan came in second and third showing
40.3 percent and 38.9 percent growth respectively while
Chery followed in fourth position at 27.9 percent.  Geely
and Hyundai-Kia were the only major manufacturers that
experienced a YOY decrease in registrations. 

    Among Chinese automakers, Chery takes the leading
position followed by FAW-Tianjin and Geely.  While these
three companies maintain their top ranking positions over
the last three years, Changan Auto, which ranked 31st in
2006 has ascended into the top ten in 2007.  

    "Overall we are seeing significant changes in
these rankings when it comes to Chinese automakers,"
said Stephen Polk, chairman, president and CEO, for R. L.
Polk & Co. "We expect this aspect of the Chinese
automotive segment to continue to fluctuate as these
aggressive companies vie with each other and the rest of
the world's automakers for market share within
China."

    According to Polk, the majority of passenger vehicle
registrations occur in the wealthy coastal regions of
China.  Guangdong province accounts for 11 percent of all
registrations in the first half of 2007.  In addition,
Guangdong grew at an impressive rate of 37 percent YOY. 
Zhejiang and Jiangsu provinces follow as second and third
strongest with growth of 27 percent and 9 percent
respectively.  Together these three provinces account for
29 percent of all national registrations in 2007.

    Conversely, China's weakest provinces with less than
five percent of the country's total vehicle registrations,
Tibet, Qinghai and Hainan, experienced the greatest YOY
growth of 69 percent, 46 percent and 22 percent
respectively.    

    The Chinese market is dominated by medium sized
vehicles that experienced a growth in market share from
34.1 percent in the first quarter of 2004 to 47.5 percent
in the second quarter of 2007.  In addition, the shares of
small vehicles and larger vehicles decreased in the same
period from 28.8 percent to 19.3 percent and 9.3 percent to
6.1 percent respectively.

    "Polk has analyzed the price development of
passenger vehicles in different body sizes and learned that
the average price of medium sized vehicles has continuously
decreased over the last three and a half years," said
Stephen Polk.  "As a result, this segment has grown as
Chinese buyers have responded by purchasing more of these
vehicles."
 
    About R. L. Polk & Co.

    R. L. Polk & Co. is the premier provider of
automotive information and marketing solutions.  Polk
collects and interprets global data, and provides extensive
automotive business expertise to help customers understand
their market position, identify trends, build brand
loyalty, conquest new business and gain a competitive
advantage.  Polk helps automotive manufacturers and
dealers, automotive aftermarket companies, finance and
insurance companies, advertising agencies, media companies,
consulting organizations, government agencies and market
research firms make good business decisions.  A privately
held global firm, Polk is based in Southfield, Mich. with
operations in Australia, Canada, China, France, Germany,
Japan, Spain, the United Kingdom and the United States. 
For more information, please visit www.polk.com.

    Editor's Note: All registration data relating to the
passenger vehicle market featured in this announcement from
R. L. Polk & Co. excludes vans and pick-up trucks. 



    For more information, please contact:

    R. L. Polk & Co

     Andrew Teachout
     Tel:    [phone] ext. 261
     Email:  [e-mail]

     Elizabeth Twork
     Tel:   [phone] ext. 244
     Email: [e-mail]