In the first half of 2012, the market sentiment of China's automobile market was uneasy, and the inventory was always high. In addition, the performance of the automobile market was general, which powerfully rebounded in August. In September, the sales volume of China's automobiles increased by 8.17% MOM, but it decreased by 1.75% YOY. However, in the second half, a slightly increasing trend is predicted to appear.

According to surveys, most insiders do not think that the automobile market possesses strong recovery capability. 47% of insiders think that the growth rate of the entire automobile industry will be below 5% this year. 44% of them deem that the overall share of independent brands will further decline. In addition, 55% of insiders believe that the profitability of automobile distributors will further fall. Due to pressure on environmental protection and transport, severe outflow of profits in the industry and so on, China's automobile market is severe in the second half of 2012. On the whole, insiders are opportunistic about the growth rate of the automobile market in the fourth quarter of 2012.

In China's automobile market, Japan-based automobiles are always in leading positions because of the high quality and brand awareness. The sales volume of Japan-based automobiles rapidly falls in the Chinese market. By the end of August, the market share of Japan-based brands was 21.2% in China.

According to the overall data released by China's Association of Automobile Manufacturers recently, the sales volume of Japan-based passenger vehicles decreased by 40.82% YOY, accounting for 12.16% of the total sales volume of passenger vehicles. Meanwhile, the market share fell by 6.46% over last month, which decreased by 8.33% YOY. In 2011, the sales volume of Toyota, Nissan and Honda in the Chinese market respectively were 11%, 17% and 20%. However, according to data issued by Toyota, Nissan and Honda, their sales volume respectively decreased by 49%, 35% and 41% YOY in 2012. The attention rate of China's consumers to Japan-based automobiles drastically decreases thereafter.

The decrease in the sales volume of Japan-based vehicles leads to the strong growth of some Europe and the U.S.-based automobiles, Germany-based automobiles in particular. The sales volume of joint-brand Germany and the U.S.-based automobiles substantially rises. Germany-based automobiles strongly develop, and they surpass Japan-based automobiles to rank the second in the market share. The sales volume of Europe and the U.S.-based automobiles rises to varying degrees. Europe and the U.S.-based automobiles are likely to be main forces in China's automobile market.

Because of the stable macroeconomic environment, stimulus policies of the government and adjustment, China's automobile industry is expected to enter a stably growing period in the second half of 2012.

Related report: http://www.cri-report.com/passenger-vehicles/991-research-report-on-china-s-passenger-vehicle-market-2011-2012.html