Chinese carmakers' domestic market share shrinks

Chinese automobile makers' domestic market share shrank in the first nine months of this year due to stiffer competition from foreign brands, an industry report showed Friday. The combined market share of the Chinese automakers in China was 42.26 percent in the January-September period, down 3.09 percentage points from the same period last year, according to the report by the China Association of Automobile Manufacturers. The local manufacturers' market share hit a record low in July, sliding to 36.13 percent. The association attributed the decline to growing demand among Chinese consumers for diversity and quality. Chinese carmakers have been facing rising competition from Chinese-foreign joint ventures that are launching aggressive promotions to buyers following the government's removal of incentives and imposition of regulations on new car purchases. Meanwhile, the Chinese government tightened subsidies further for small car purchases starting this month, in a bid to promote more fuel-efficient technologies and encourage restructuring among China's automakers. The tighter standards are expected to affect Chinese makers more, as their sales rely heavily on light and small-size cars, compared to their foreign rivals.