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    China Business
     Feb 14, 2006
Exports, hybrids in changing China auto industry

BEIJING - In two indications of the continuing rapid evolution of China's booming auto industry, it was announced that in 2005, for the first time, China exported more autos than it imported. Also, the country's hybrid car industry has made great progress, with four Chinese auto makers expected to put hybrids on sale by the end of this year.

Exports exceeded imports in 2005
In 2005 China exported 172,639 autos, 11,031 more than it imported, according to the latest figures from the Ministry of



Commerce. This is the first time the country has exported more cars than it imported in a year. The value of these exported autos was US$1.58 billion, jumping 158.4% year on year. In terms of number of units, the increase was 120.5%.

Of the total, China exported 31,125 sedans worth $271 million, jumps of 233.4% and 222.2% year on year respectively, and 1,844 off-road vehicles, 10,442 microbuses, 6,433 large and medium-sized buses, 96,549 trucks and some special-use vehicles.

Meanwhile, China imported 161,608 autos worth $5.2 billion, down 8% and 4.5% year on year. Of the total, China imported 76,542 sedans worth $2.6 billion, down 34.1% and 20.7%, 65,966 off-road vehicles worth $1.8 billion, up 86.8% and 66.3%, and 12,487 microbuses worth $266 million, up 17% and 14.9%. China's import of large and medium-sized buses, trucks and special-use vehicles dropped in 2005.

Since the average unit price of autos exported by China is much lower than that of autos imported by China, the total dollar value of auto exports was less than one-third of the import value, despite the fact that exports exceeded imports in terms of numbers.

Hybrids to hit market
Environmentally friendly hybrid cars are expected to be released on to the Chinese market at the end of this year after four years of development. The cars, which run on a mixture of electricity and fuel, are made by several Chinese auto firms, including the Dongfeng Motor Corp (DFM), Chang'an Motor Corp, Chery Auto Co and the China FAW Group Corp.

Wan Gang, head of a national team of experts on the hybrid-automobile program, says scaled production of the vehicles has been listed as a key task in China's 11th Five-Year Program that begins this year, so that more Chinese families can own the low-emission cars by 2010.

The development of hybrid vehicles was listed as a key project in China's "863 program" - a national high-tech plan initiated in March 1986 to enhance the country's overall power - and as part of the 10th Five-Year Plan adopted in 2001.

In recent years, Chinese experts have made great progress on the design and development of a series of hybrid buses, including the fuel-cell bus, the hybrid-electric bus and a bus run purely on electricity. Twenty hybrid-electric buses, designed and made by DFM, are in service in Wuhan, the capital of central China's Hubei province. Another flagship hybrid bus also drove off the China FAW Group Corp production line recently.

Wan noted that the two types of hybrid buses have both passed official tests, signifying the start of the mass production of environment-friendly buses in China. Statistics released by the FAW said hybrid buses can save 30% over conventional buses with respect to oil use, and reduce harmful exhaust by 30%. Wan says an increasing number of Chinese automobile manufacturers have selected hybrid vehicles as targets for future development. "These firms have formed China's first hybrid-automobile production base," Wan acknowledged.

A senior official with the Ministry of Science and Technology said China has made remarkable progress in the development of hybrid vehicles, and that in-house production would undoubtedly increase its competitiveness in the global market. Despite the progress in the industry, experts maintain that its level of technology is still far behind more advanced international standards. Experts urged the Chinese government to issue more favorable measures in support of the production of hybrid cars in China.

(Asia Pulse/XIC)


The dragon at Detroit's gate
(Jan 24, '06)

Auto exports rise 133% in 2005
(Dec 16, '05)

Development of compact cars encouraged
(Nov 15, '05)

China's not geared up for auto exports
(Oct 22, '05)

Mixed outlook seen for auto exports
(Oct 12, '05)

 
 



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