The 14th Shanghai International Automobile Industry Exhibition (Auto Shanghai 2011) was held on April 21 through 28 and the reporter from auto.sohu.com interviewed on April 18 Chairman He Lianyi of Zhongyida Group. Mr. He talked about the development trend of Chinese auto market, the channels of reform, and other hot topics in the field. He predicted that the annual sales would continuously grow by 15% this year. He believed that, along with the development of market, the auto businesses would be more diverse and the auto distribution would be more mature and standard.
Reporter: Would you please share with us your impression on Auto Shanghai 2011?
He: China is a world leading consuming country now. More and more manufacturers and consumers turn their eyes to Chinese market. I believe Chinese auto show will gain more influence in the world. Auto Shanghai 2011 showcases Chinese auto industry and auto market and I think I’m greatly impressed by it.
Reporter: Chinese auto industry grew rapidly in past two years but declined during the first quarter this year. How will the scene unfold this year?
He: The rapid development in past two years was the natural result of a steadily growing economy and a series of supporting policies. The preferential policies were dropped by the end of 2010 and some consumers changed their purchasing plans so as to get the chance to enjoy these policies. As a result, part of the purchasing power was released ahead of time and this resulted in the slowdown of sales growth during the first quarter this year. But when you taken a look at Chinese auto market by cities, tier 1 cities are at a relatively stable and mature stage, tier 2 and 3 cities have strong demand and feature rapid growth. So I believe the sales growth this year will reach 15% and more than 20 million cars. I think the car market is on the rise.
Reporter: What stage do you think auto distribution is at right now?
He: At present, auto industry has made outstanding contribution to GDP growth in China. As a downstream sector, auto distribution now experiences two changes of structures, including capital structure, and of industrial competition, that is, survival of the fittest. I believe auto distribution sector will grow mature and standard, meeting the international standards.
Reporter: Do you think there will be any changes to business structure?
He: The market becomes more mature, I think the businesses will definitely be more diverse in future.
Reporter: Beijing government launched strict policy aiming at reducing car purchasing, what do you think this will affect the industry?
He: I think this is the same with the real estate in China. Without limitation, their rapid growth will cause serious social problems. First of all, the roads will be jammed. More importantly, there will be problems about energy and environment. I believe the restrictive policy has direct impact and you can see quick result. But the policy-makers should also take more consideration of actual situations and should make the policy more reasonable, more specific, and more scientific.