World's automakers vie for China market

From international marques like Mercedes to up-and-coming domestic carmakers such as Chery, more than 1,500 manufacturers were on hand for the first media day at industry show Auto Shanghai 2009.

The show represents the growing importance of China's more than 1.3 billion people and a market that overtook the United States three months ago as the world's biggest for car sales.

“We treat this as one of our most important shows,” said Helmut Broeker, chief executive officer of Porsche China.

“This is the first time we have launched a product line in Asia and outside our core countries.”

He was referring to the Panamera, a four-door sports car making its international debut in Shanghai whose turbo version will cost about 2.5 million yuan (US$370,000) including taxes in China.

At a time when the global financial meltdown has pushed other auto markets to the brink of collapse, the Shanghai show was set to feature the global or Chinese launches of at least a dozen cars.

Audi launched its A3 luxury sedan while other models set to be unveiled to the world at the show include the Mercedes S400 Hybrid, which combines a petrol engine with a lithium-ion battery, and the BMW X5 M, a sports activity vehicle.

Ford Motor company put on a Hollywood-style presentation Monday, lowering its four-door Fiesta, a new product for the China market, onto the stage from above, surrounded by models clad in black leather in a display reminiscent of “The Matrix” and “Mission Impossible” films.

“China is a very critical market for Ford Motor company,” John Parker, Ford's executive vice president for Asia Pacific and Africa, told AFP.

Ford aims to sell 250,000 units in China this year, accounting for about half of sales in Asia, Parker said.

China's own auto makers were also aiming to grab headlines with launches of the subcompact Roewe N1 from SAIC Motor Corp. and the Riich M1 from Chery, a subcompact.

Embattled U.S. auto manufacturer General Motors, on the verge of bankruptcy at home, said the Chinese market was critical for the global auto industry.

“The Shanghai show is certainly one of the most important shows in the world now and reflects the size of the Chinese market and the breadth of the competition here,” GM Asia Pacific President Nick Reilly told reporters.

The company aims to double its sales in China over the next five years.

The head of Honda's China operations, Atsuyoshi Hyogo, echoed similar sentiments.

“We are seeing a major shift in the battleground within the global automobile market from the U.S. to China,” Hyogo said.

Previously China was not expected to become the world's number one market until 2015, but the economic downturn and plummeting sales in the United States accelerated that development.

China's monthly car sales surpassed the United States for the first time in January, when a total of 735,000 were sold in China, compared to 656,976 vehicles in the United States.

China's auto sales then hit a monthly record of 1.08 million units in March.

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