hina\u2019s Year of the Tiger began on February 1 with the government determined to demonstrate the country\u2019s strength and stability. So what does this overriding priority signify for China\u2019s automobility industry in the year ahead?<\/p>\n\n <\/div>\n\n \n\n <\/div>\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Berylls can make several broad economic forecasts with reasonable confidence: China\u2019s Producer Price Index (PPI) fell for two consecutive months at the end of 2021, suggesting that the policy of maintaining supply and price stability will continue to be effective. New construction projects increased significantly in December, adding weight to other evidence that the economy is strengthening.<\/p>
At the same time, don\u2019t expect runaway growth in 2022: the consensus among economists inside and outside China is that GDP will increase year-on-year by 5 to 6 percent. There is one last point of particular interest to carmakers. Carbon neutrality by 2060 is now a major policy priority, as China gets closer to its first national target of ensuring that rising emissions peak by 2030.<\/p>
Against this background, foreign carmakers and suppliers in China confront a series of challenges and opportunities that demand answers now. They include whether China is still a safe bet for making a profit, especially for premium OEMs; what are the right price points; and whether there are any hidden gems that OEMs have overlooked. For example, we think it\u2019s time to enter China\u2019s rapidly expanding and increasingly mature used car market.<\/p>