From The New York Times:
The Chinese automobile market still may not be big enough to support homegrown manufacturers and foreign automakers.
China is passing Japan as the world’s second-largest vehicle market this year, with sales soaring for cars of every size and shape. But the Chinese market still may not be big enough to support all the homegrown manufacturers as well as the foreign automakers trying to do business here.
China has more car brands now than the United States, as companies like Fiat and PSA Peugeot Citroën compete with General Motors, Ford, DaimlerChrysler, Toyota and Nissan in joint ventures with Chinese companies. But while car sales have climbed 38 percent in the first three quarters of this year, automakers have increased their output even faster, causing fierce competition and a slow erosion in prices, with further price cuts this autumn for top-selling models like the Buick Excelle and Hyundai Elantra. [Full Text]
