Second and third-tier markets or into automotive consumption hot spots

Due to the stimulating policy of the automobile industry and overdrawing the potential demand for cars in the coming years, relevant industry analysts pointed out that the car-buying spree like the end of 2010 may hardly happen again later. At the same time, Beijing’s most aggressive blocking plan has so far been implemented at the end of last year, pushing down the expected sales of the national auto market in 2011 by 3%. Due to the demonstration effect of Beijing, cities such as Guangzhou, Chongqing and Shanghai are all formulating relevant plans. In view of this situation, experts believe that most car companies have already considered moving to the second and third tier markets.

According to news from different car companies, in spite of various challenges, the production and sales targets of some car companies in 2011 are still set high. Dongfeng Nissan’s sales target for this year is 772,000 units, an increase of 28.7%; Mazda is 280,000 units, an increase of 20 %; Chery is 900,000, an increase of 30%; FAW Toyota's annual sales target is 550,000, an increase of about 10%.

However, in anticipation of implementing a blockade plan for large-scale first-tier cities across the country, the move to second, third, and even fourth-tier cities to ensure sales growth in 2011 and beyond has become the consensus of most auto makers. Not only are the joint venture brands such as GAC Toyota and GAC Honda, but their own brands such as the Hippocampus, Great Wall, and JAC have also turned their attention to the broader second and third tier markets, extending their sales networks, and vigorously expanding the development of county-level cities and other market outlets.