Market demand for cars exaggerated
20/2/2003 15:27
Most car models in Shanghai are in ample supply, and claims of overheating
are exaggerated, the Youth Post reported today.
Some media reports said
people were standing in line to buy cars.
In fact, only certain models
just on the market have buyers standing in line, with most models in ample
supply, said an industry analyst.
The Passat, Sail, Vios, and Polo are in
full supply, while the new Buick Regal and Guangzhou Honda models are in short
supply because of a backlog of pre-launch orders, according to many local auto
sellers.
According to statistics, up to 3.2512 million cars were produced
in China last year, an increase of 38.4 percent from a year before, and sales
reached 3.2481 million, up 36.65 percent.
This indicates that supply and
demand are in balance on the domestic auto market, said the analyst. Compared
with Beijing and Guangzhou, demand for cars in Shanghai is lower, with
3,000-5,000 new cars needed in the city every month, the analyst
said.
Shanghai General Motors and Shanghai Volkswagen Automotive Company
Ltd have received numerous reports of high market demand since last year, which
proved to be exaggerated upon investigation, according to Shanghai GM and VW.
One factor inflating figures is that a single car buyer will often contact many
different auto sellers.
Price cuts were made on low and mid-end models
last year, and are expected on mid and high-end models priced between 150,000
and 250,000 yuan this year, said an expert.
Wendy Zhang/ Shanghai Daily news
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