- Title: Brand new car models debut at China's second largest autoshow
- Date: 18th November 2016
- Summary: VARIOUS OF DANCERS ON STAGE UNVEILING TOYOTA YARIS L
- Embargoed: 3rd December 2016 10:46
- Keywords: China Guangzhou autoshow car vehicle car models SUV exhibition Cadillac Volkswagen Mercedes Benz Toyota Renault Dongfeng electric car Peugeot
- Location: GUANGZHOU CITY, GUANGDONG PROVINCE, CHINA
- City: GUANGZHOU CITY, GUANGDONG PROVINCE, CHINA
- Country: China
- Topics: Economic Events
- Reuters ID: LVA00658Z0BB9
- Aspect Ratio: 16:9
- Story Text: China's second most prominent auto show of the year kicked off on Friday (November 18) with a slew of announcements coming from the automotive industry, including upgrades of the increasingly popular Sport-utility vehicles (SUV) and new electric concept cars aimed at taking advantage of government subsidies.
The China International Automobile Exhibition, held in the southern Chinese city Guangzhou, showcased cars from both foreign and domestic automobile companies. Various companies showcased upgraded SUV models to meet the growing demand for the big four-wheel drive.
SUV sales have soared in China in recent years with consumers choosing larger cars as they grow wealthier. Sales in the segment are up 46 percent in January-October from the same period a year earlier.
Mercedes Benz - owned by Daimler AG - debuted its first all-electric SUV concept car at the show. The company hopes the "EQ" concept car will drive its investment towards electric vehicles in China.
"We've been a bit more conservative in the past on what the volume (of EVs) could be. We now believe 2025, 15-25 percent of our vehicle sales could be electric. This is why we decided to create a new sub-brand which is 'EQ'. It's not IQ intelligence, it's EQ: electric intelligence," said Hubertus Troska, the Daimler AG Board Member responsible for China.
"Actually by international comparison, the SUV share in China is still a little smaller than in the Western countries. So I do believe China will continue the trend for SUV," Troska added.
French company Renault, known for its SUVs, launched a second localised four-wheel drive at the auto show, despite talks the market is getting crowded.
"SUV is still the most growing segment. And total SUV represents 37 percent of the market, so its why, Dongfeng and Renault decided to go together starting with SUV. And I think that was a good choice to start with a localised product," President of Renault Dongfeng Francois Provost said.
Cadillac also agreed, saying there is room for the SUV market to grow.
"SUV development in China is really impressive. We see more and more customers being attracted from, I think, the lifestyle behind an SUV, and the active lifestyle which requires such a product," Vice-President of Cadillac China Andreas Schaff said.
The SUV share of China's auto market is still far lower than that of the U.S., suggesting plenty of room for the segment to grow, but increased competition is putting pressure on sales prices and margins.
The exhibition will end on November 27.
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