Is the magic beginning to fade inside the Chinese auto market?A brand new report from consultants Roland Berger warns that, merely as China’s market has mushroomed into a position of enormous significance for worldwide auto makers, it really is entering a phase of much slower growth than it has experienced newly. What’s Leading Edge Designs now?: auto parts !The report, titled ‘ ?’ notes that China now directly accounts for 14% of total revenue of a typical European auto supplierâ ‘double the 7% level of 2007. Glamour auto parts are One of Highest Fashion Style Throughout the World Add in sales of cars exported from Europe to China, and the total now is about 18%, it says. The Right time to Pair With, The Best auto parts to Enjoy That’s been a huge boon to corporations like Volkswagen AG, BMW AG, the Mercedes-Benz unit of Daimler AG, and PSA Peugeot Citroen SAâ ‘and, certainly, a similar boon has been enjoyed by U.S. and Japanese rivals like General Motors Co., Ford Motor Co. and Toyota Motor Corp.But the German consulting firm says those glory days of supercharged growth are over. It projects growth will slow to 15% next season, then 10% in 2012, and 8% by 2015.Certainly the marketplace will still be huge by thenâ ’18.7 million passenger motor vehicles in 2015, Roland Berger estimates. And by any normal standards those are healthy growth rates.But they’re faraway from the growth makers have grown used to: an estimated 35% rise in passenger vehicle sales this year, 51% last year, and an average of 35% from 2001 to 2007.The survey is the latest gloomy news for the automobile field in China. On Tuesday, the government confirmedthat it will end a tax break for purchases of smaller carsâ ‘sales of which have boomed inside the last two years. And thursday of last week officials within the capital announced that to fight worsening traffic congestion, they would limit new license platesthis year to lower than a third of roughly 750,000 cars sold in Beijing in 2009â ‘fueling fears that other cities might follow suit.Of course, many industry executives are already awareof the impending slowdown. But the down shift will still require difficult adjustments. Says the Roland Berger report: ‘China will never save supplier’s business in 2011.’
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