As Chinese wages have continued rising over the years, China’s attractiveness as a manufacturing and export hub, on the back of cheap labour, is diminishing (see ‘Rise Of Robots As Industry Moves Up Value Chain’, December 4 2012). Our long-term auto production forecasts take that into account and we see them growing in line with our auto sales forecasts, mostly to satisfy domestic demand as exports are likely to enjoy slower growth rates in the coming years. According to the China Association of Automobile Manufacturers (CAAM), China’s June 2013 vehicle sales rose 11.2% year-on-year (y-o-y), to 1,754,084 units and sales …
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