China's Auto Market to Maturity     

"In China's fast developing market, car manufacturers need to build strong brands to distinguish themselves from increasing competition. The tremendous potential of the Chinese auto market by itself is no guarantee for sustainable success," said Jim Sailor, TNS Greater China Managing Director, at the Economist Group's Fourth Automotive Industry Leaders Roundtable in Shanghai. "Uncompromising customer orientation will be key to accomplishing their ambitious goals," he adds.
   According to TNS, China has now overtaken Japan to become the world's second-largest auto market after the United States. Total new vehicle sales (including trucks and buses) grew by around 22% to 8.8 million in 2007. Today, China has approximately 70 car manufacturers (OEMs) and the automotive industry is relatively fragmented: the country's top seven manufacturers account for around 50% of passenger car market share. Also, foreign brands currently dominate the market, accounting for almost 75% of China's car sales. However, domestic manufacturers are increasing their activities rapidly, as they try to expand their product lines in the medium and upper car segments.