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Elimination game starts in car market
(eastday.com)
Updated: 2004-07-29 14:45

Chinese car manufacturers were involved in a merciless elimination game in the first half of the year, with productions suspended for nearly ten car models, eastday.com reported today.

Most car models that were crossed out of the market are economic sedans. In February this year, Ford Festiva (1.3L) was suspended production; Tianjin First Automotive Works (FAW) announced suspension of Echo and Xiali 2000 sedans this year.

The price cuts of tens of thousand yuan on New Accord and Mondeo sedans have reshuffled the domestic mid-end car market. Beijing Hyundai suspended production for Sonata 2.0 (AT) sedans in March this year; in May, Shanghai VW announced to stop production for two Passat models after their prices dropped below 200,000 yuan (US$24,000) for the first time.

Supply outpaced demand in domestic sports-utility-vehicle (SUV) market in the second half of last year, with productions stopped for mid-end Chevrolet Blazer SUVs at the beginning of this year.

In order to avoid frequent price cuts, domestic car manufacturers are preferring to suspend productions on unpopular models, but they ensured sufficient supplies of the relevant auto parts and quality maintenance services.

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