Reading the economic mood of China’s automotive supply chain executives today is more confusing than it has been in recent years.
On the one hand, carmakers, tier suppliers and logistics providers continue to invest strongly in the manufacturing base and supply chain of the world’s largest vehicle market, where 24.6m vehicles were sold last year – a rise of around 4.6% compared to 2014. Furthermore, sales in the first quarter of 2016 were up around 6% compared to the same period last year.
There has also been growing interest in connecting China to Europe by rail via Russia and central Asia. In line with the ‘One Belt, One Road’ policy heralded by China’s president, Xi Jinping, the government has provided support to help revive trade links along the old ‘Silk Road’, with favourable regulations and subsidies to encourage the use of rail services between China and Europe, including for car parts, kits and finished vehicles.
On the other hand, however, despite the volume growth and rising logistics demand, many executives in China have pointed to signs of market stagnation and higher cost pressures.
This year’s Automotive Logistics China conference will held at Shanghai from 11-13 April 2017.
For more information please visit: http://automotivelogistics.media/events/china/2016-2/report