One side is a sharp devaluation of the yuan in August, while the continued decline in domestic vehicle before July exports, sudden changes in exchange rates and the impact they have become a concern exports the domestic auto industry.
Three days August 11-13, the yuan against the US dollar continuously almost 30 basis points accumulated depreciation depreciated 4.66%.
On August 11, the same day, the China Association of Automobile Manufacturers released data before the July auto exports, exports of 445,800 cars, down 13.7 percent from the previous year. Exported 253,700 cars, up 16.1 percent over the previous year, exports of commercial vehicles 192,100, down 10.4 percent over the previous year.
In this context, the devaluation is considered as part of the price of cars
head rotor 149701-0520 overseas price advantage of the good news. However, it seems that some car prices, short-term depreciation of the RMB gains in overseas markets will expand, but the reaction in the price still needs some time. In addition, the devaluation of the yuan affect car prices in overseas factories.
Short-term vehicle exports good
"The devaluation of automobile exports is certainly advantageous." Sales company Lifan, a person responsible for the "Daily Economic News" reporter said that after the devaluation of the price of cars in revenues overseas market will expand, "A lot of business abroad is settled in US dollars ".
However, if devaluation can extend their advantage in the price of the car brand overseas sales expanding therefore the prices of cars in different situations are not the same. "Lifan has built seven factories, local produce relatively large proportion." The official said reporters Lifan, Lifan's total sales in the market share abroad is higher than the national, and therefore was built Lifan most major overseas markets have relatively complete production base, the devaluation of the local production of cars have little effect.
However, a person in charge told reporters Geely, Geely, the "exchange rate remain low if the long term, help drive larger advantage in domestic prices."
This reporter learned that, in the business of export auspicious, vehicle exports are still occupies a large proportion, so the devaluation of some products for the price that would be good. In addition, overseas factories mainly based Geely assembly plants, which remains part of national exports, so the cost is expected to benefit from devaluation and lower.
Still, he said Geely Group, makers still told reporters that the current depreciation of the RMB and duration is uncertain, thus affecting its own brand in overseas markets will not be much for the short term.
Construction costs rise overseas
In fact, the independent brand sales in the overseas market, especially in developing countries, "Consumers in these countries are relatively sensitive to price." Passengers National Car Market Information Co (hereinafter the Federation) said the Secretary-General Choi Dong-tree "Daily Economic News" reporter. In his view, the devaluation is expected to continue to expand its own brand of competitiveness in these areas.
According to statistics previously released by the Federation of 2015, five months, three exports of larger cars from China to overseas markets were Iran (56,000), Vietnam (34 000) and Algeria (24,000), that sales the market of the three countries accounted for 34.2% share of car exports.
In fact, the Third World is the most important export market for Chinese auto. According to the Federation before May exports to Asia accounted for 50 percent of the national export quota production of automobiles, followed by 24 percent in South America and Africa, 19 per cent, while exports to Europe and North America, compared with only 4% and 2.1%.
"Prices of domestic cars export earnings abroad in general is not high." Choi Dong-tree, told reporters that China's main competitive advantage is the price of cars in these countries.
Therefore, some of the industry view, even if the RMB exchange rate may be positive auto exports fell in price, but that does not solve its own brand in overseas markets facing products and competitiveness problems brand.
Moreover, the decline in the exchange rate of the RMB in the cost of Chinese enterprises to invest car factories abroad also pushed up, which for companies domestic car "out" will also be a signal big disadvantage.
Still, Choi Dong-tree view, the RMB exchange rate reduces the countries and Asian export markets positive stimulus is expected that China's auto exports to begin to recover in the second half is expected to export 900,000 scale.
