Financial Times FT.com

The car market: In need of economies of scale

By Geoff Dyer

Published: October 9 2007 08:48 | Last updated: October 9 2007 08:48

The biggest surprise in the Chinese car market has been the sudden emergence of the local carmakers. From almost nothing a few years ago, Chinese brands now command about 28 per cent of the market and rival the Japanese for first place.

That means that Chinese companies will sell about 1.5m of their own cars this year. One Chinese carmaker, Chery, now has a 7.9 per cent market share and is the fourth most popular brand in the country. Chinese companies have become adept at marketing to the cost-conscious, newly middle-class families who are first-time car buyers.

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