Issue: Dec 2014


Auto Shanghai the gateway to rapidlygrowing market



by Alan Tran

Chinese vehicle sales are continuing to show one of the fastest growth rates in the world thanks to a combination of government support and increasing affordability by residents.  Automobile industry consulting firm Sinotrust predicts that vehicle sales will reach 15.13 million units this year, with a year-on-year growth rate of 15.2%. According to the Ministry of Public Security, almost 200 million Chinese people, or 15% of the population were able to drive a vehicle, by the end of 2013.

Government incentives put in place in 2013, and which saw a 59% year-on-year increase in new vehicle sales, are being extended according to the organizers of Auto Shanghai 2015. Domestic auto market has many incentives provided by the government to boost demand include tax cuts on small-displacement automobiles, subsidies for trade-ins and subsidies for farmers to buy vehicles.

There are also ambitious plans for supporting the introduction of electric vehicles. The Chinese central government has laid out its plan, policies and priorities in a recent announcement of an EV stimulus program aimed at promoting mass market adoption in the urban cities where fuel consumption and pollution problems are the most prevalent.

This creates favorable macro-economic drivers, policies that accelerate EV charging infrastructures and tax incentives and fuel pricing that favors EV, including specific programs that require government vehicle purchasing quotas to allocate a minimum of 30% of its new vehicles to be full electric.

Besides “free” new auto license registration for EVs, more support has been provided to all buyers of full electric vehicles since September 1, 2014. This includes zero automobile sales tax for EVs (compared to gasoline or hybrids, which is 8.5%), and zero consumer tax for the manufacturers. This tax ranges from 6% to 10% depending on EV product types and class.

Other policies stated by this announcement are requirements for parking garages for building and public areas to install charging stations. Private enterprises can now install charging stations in urban developments or parking garages, and provide charging facilities in public areas.

Providing a showcase for OEMs and other suppliers wanting to make their mark on the Chinese market, the 16th edition of Auto Shanghai 2015 will be held from April 22-29, 2015 at National Exhibition and Convention Center (Shanghai) (NCEC). The event is one of the most important auto events in China and indeed the whole region.

“Efficiency and innovation govern the way in which the organizer of Auto Shanghai plans and manages the event.” The aim is to convey to visitors and the media the unique charm and feeling of auto culture. We warmly invite you to join us at Auto Shanghai 2015,” say the show organizers.

Auto Shanghai 2015, which is held every two years, provides an important platform for exhibitors and visitors to showcase both domestic as well as international car companies’ technologies, products and innovations. Fifteen successful editions of Auto Shanghai have been held since the show was launched in 1985. The 16th edition is coming up in 2015. Over the past 30 years, Auto Shanghai has testified to the boom in China’s automobile industry, and built a platform for communication and cooperation between auto companies in China and abroad. Auto Shanghai ranks as one of the most important and respected auto shows in the world, and it is a key date in the diary of auto fans,” says a statement by the show organizers.

Auto Shanghai is jointly organized by the China Association of Automobile Manufacturers, China Council for the Promotion of International Trade (Shanghai Sub-Council), China Council for the Promotion of International Trade (Automotive Sub-Council), Shanghai International Exhibition Co Ltd (SIEC) and Internationaler Messe und Ausstellungsdienst (IMAG).

The previous edition, Auto Shanghai 2013, had a combined show space of 280,000 square meters, brought together 1,787 Chinese and foreign exhibitors from 18 countries and regions worldwide. The show attracted around 813,000 visitors. Up to 1,300 complete vehicles were on display at the event, including 69 concept cars and 91 new energy vehicles, while 111 new models had their world debuts at the event. In addition to the 813,000 visitor arrivals, the show attracted 10,493 journalists from 2,718 domestic and abroad news media organizations who provided on-site reporting of the event. The success of Auto Shanghai 2013 created an excellent platform for exchange and cooperation between global carmakers, drawing wide attention from the automobile industry and from every community across China.

China’s domestic carmakers, among them the six major players, FAW, SAIC Group, Dongfeng Motor, Changan Automobile, GAC Group and BAIC Motor, as well as other Chinese brands including Chery, Brilliance Auto, Geely, BYD and Great Wall Motor, gathered at Auto Shanghai 2013, posing a significant challenge to traditional multinational industry leaders. Chinese domestic brands have experienced a giant leap forward in progress by shifting from mere imitation of foreign counterparts to self-innovation.

Automotive Industries (AI) asked Gu Chunting, Assistant to Chairman of CCPIT Shanghai and President of SIEC, what will be some of the highlights of Auto Shanghai 2015.

Chunting: Auto Shanghai is moving to a new venue – National Exhibition and Convention Center (Shanghai). The 2015 edition of Auto Shanghai will be held over a total area of 300,000 square meters, and is expected to attract nearly 1 million visitors. The theme of the 16th Auto Shanghai is “Innovation for Upgrading”. The event will showcase how auto culture has impacted the automobile industry, speeded up technological innovations, and brought about a new lifestyle.

AI: What is the significance of the show’s theme in 2015 - ‘Innovation for Upgrading’?

Chunting: Auto Shanghai always pays close attention to ongoing developments in the automobile industry. Ever since automobiles were invented, technologies have been promoting the development of the automobile industry. The event will showcase the allure of the automobile industry, technological innovation and the new lifestyle brought by auto culture.

AI: What are some of the innovations, technologies that will be showcased at the Auto Shanghai 2015?

Chunting: Smart electronics, new energy, and multifunctionality are the trends shaping further development. We believe that new technologies will lead to a safer, more convenient, and more comfortable life. Because of these changes, China and the global automobile industry are facing new challenges



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