GlobalAutoTV
"Doing Business in India"
Avneet Jolly and Anupam Prakash
Click to watch Avneet Jolly and Anupam Prakash -
Click to watch Avneet Jolly and Anupam Prakash -
asia resources


Need an office in Asia? Office suites, meeting rooms, virtual offices, network access



free downloads
ASIA: "Private equity roundup — India (Q3 2011)" report

ASIA: "Private equity roundup — India (Q3 2011)" report. 16-page report by Ernst & Young.

proceed to download
eJournals




back to index backASIAtalk February,  2017


Autos: China Underlying Demand Strong in January (2017)

Data from third-party providers suggests China underlying demand remained strong in January despite the shift in the Chinese New Year and smaller government tax incentive. Local Chinese auto associations estimate demand declined 10% in January despite 5-day selling impact from Chinese New Year. Sales were +10% excluding selling days, well above our/investor expectations and some channel checks” that called for 20% declines in January. We will receive full data (with OEM/segment detail) later this month.

- Remain buyers of auto suppliers; China demand better than expectations in January. Underlying demand increased 10% in January despite reduced government tax incentives. Demand appears to be tracking well above our Q1 estimate down roughly 10% and full-year estimate for flat demand. Holding this level of demand over the next several months would pressure our full-year estimates higher. Our covered companies with the greatest China exposure include: ADNT, DLPH, ALV, BWA, and VC.

- China Passenger Car Association (which measures retail demand) estimates that sales fell 10% yoy in January. This includes a 5-day impact from the timing of the Chinese New Year, which fell in January (versus February in 2016). Adjusted for selling days, we believe demand would have been up roughly 10% yoy. Additionally, at the beginning of 2017, the government raised the tax on smaller vehicles (with engines smaller than 1.6 liters) to 7.5% versus 5% in 2018. As we noted in our preview earlier this year (link), we expected flat demand in 2017 due to difficult comps and smaller government incentives.

- China Association of Automobile Manufacturers (CAAM) reported light vehicles sales declined 1% yoy in January (+20% days adjusted). CAAM provides a wholesale figure that best equates to OEM production. In recent months, CAAM wholesale deliveries have been running 300bps below our production figures from LMC (which excludes some lower contented vehicles). We believe part of the sales/production difference in January was to rebuild inventory after the strong demand finish to the year.

- Note, we will receive the full data with OEM/segment breakdown from LMC later this month.

To download 6-page report, please click here.

Source: BAIRD - GAI




previous page

go top



search our site


Loading

ASIAtalk

Other articles from the same issue (February,  2017).

Emerging markets key to China's intl automotive growth
play read on

Japan makes big push for hydrogen fuel cells scorned by Elon Musk as impractical
play read on

Budget 2017: Top 5 expectations of Indian automobile industry
play read on

Trump’s stoush with Japan over autos
play read on

The Proton Saga: why would Malaysia sell its ‘symbol of dignity’ to China?
play read on

Vietnam: Auto parts makers steer toward Poipet
play read on

South Korea’s Automotive Semiconductor Industries Non-Responsive towards International Standardization Process
play read on

China's new-vehicle sales decelerate in January
play read on

ASEAN Supply Chains: Building collectively
play read on

Negotiating In China: 6 Cultural Business Tips For Success
play read on

Asia Employment Law Forecast 2017
play read on

India: Union Budget 2017-18 Publication
play read on

Why 110 Japanese firms went bankrupt in China last year
play read on

India: Focus needs to shift to manufacturing: Nirmala Sitharaman
play read on

Budget 2017 must boost ease of doing business in India
play read on

China January exports rise signalling revival of global demand
play read on

Japan’s December core machinery orders up 6.7%
play read on

Asia Pacific Competition Quarterly Newsletter
play read on

Korea Argues KORUS Trade Deal Is Misunderstood, Not ‘Job Killer’
play read on

Does Trump’s TPP exit dash hopes for growth in Asia?
play read on

India manufacturing activity resumes expansion
play read on

PMI Summary: Emerging Asia manufacturing conditions improve
play read on

Sourcing Talent in ASEAN: A Guide to Regional Opportunities
play read on

India: January sees 3-fold growth in M&A deals: report
play read on

Amendments to the Thai Labour Protection Act Regarding Child Labour Violations
play read on

China: Final countdown on for new FTZs
play read on

Autos: China Underlying Demand Strong in January (2017)
play read on

Asean's golden opportunity
play read on

Moves to make business easier in Thailand
play read on

Cyberattacks targeting Japan networks hit a record 128.1 billion in 2016
play read on

Caterpillar Japan: A Major Success Story
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120