China’s auto industry could more than double by 2020, says BorgWarner CEO

Article by Christian A., on November 25, 2010

BorgWarner Inc. CEO Timothy Manganello said during the Reuters Global Autos Summit that production capacity in China's auto industry could grow to 40 million units by 2020.

However, a surge beyond that level might risk drowning the Chinese market and others with excess supply.

BorgWarner estimates that Chinese auto production could grow to 30 million units by 2020. In 2009, vehicle sales in China surged to a record 13.6 million units and, for the first time, the Chinese market surpassed the U.S. market.

Manganello adds that some forecasters see even higher sales of 40 million by 2020. However, there may not be enough Chinese buyers to snap up cars to support that level of production.

This could result in Chinese automakers trying to sell their excess vehicles in North America, Europe and elsewhere in Asia, a move that would pressure pricing in such markets and expose areas of costly excess capacity for competitors.

Manganello also adds that increasing capacity to build 40 million cars may also backfire on Chinese automakers, leaving them with too much supply and few buyers. [via autonews - sub. required]

If you liked the article, share on:

Topics: china, borgwarner, sales

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries