Date
19 August 2017
German auto brands now control more than 28 percent of the mainland vehicle market. Photo: Mercedes Benz
German auto brands now control more than 28 percent of the mainland vehicle market. Photo: Mercedes Benz

German auto team widening its lead in China

While Germany’s soccer team triumphed in Brazil, its auto brands are also doing very well in China.

German brands controlled more than 28 percent of mainland auto market in the first half this year, occupying the top position and enjoying a comfortable lead against other foreign brands. Number two Japan had a 16.6 percent share, US held 16.2 percent, South Korea 10.86 percent and France 5 percent.

German brands have widened their edge against Japanese rivals since Tokyo’s territorial row with China worsened in 2012. Chinese car buyers have been avoiding Japanese brands after many such vehicles got smashed and torched during the anti-Japan riots in several Chinese cities back then.

Meanwhile, strong diplomatic ties between Berlin and Beijing have also helped widen the German auto makers’ lead.

During German Chancellor Angela Merkel’s tour of China earlier this month, FAW Group and Volkswagen signed a major deal to build new vehicle plants in Qingdao and Tianjin. In April, during President Xi Jinping’s visit to Germany, Volkswagen, Daimler and BMW also announced various investment plans with their mainland partners.

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CG

EJ Insight writer

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