China Experiences An SUV Boom
According to a recent report by Joe McDonald, published in The Detroit News, China is experiencing a big boom for SUVs. According to McDonald, the SUV boom clashes with efforts to push automakers to develop electric cars and to sell smaller vehicles to help curb smog and demand for imported oil in China. But according to reports, the image of a big and safe SUV seems to appeal to Chinese drivers.
"You've got almost everyone targeting SUVs," said analyst Namrita Chow of IHS Automotive. According to the report, SUV sales in China rose 20 percent last year to 2.5 million vehicles, according to LMC Automotive. Auto Foresight, a research firm in Shanghai says that the market share for SUVs in China, could rise as high as 25 percent in the next few years.
According to McDonal's report, Ford Motor Co. plans to manufacture two of its four SUVs, the EcoSport and the Kuga, in Chongqing. Its Edge SUV will be imported from Canada and the Explorer from the United States. General Motors Co. expects annual SUV sales to reach 4 million by 2020, according to Bob Socia, president of GM's Chinese arm. The Freemont, based on the Dodge Journey, was unveiled at last month's Shanghai auto show. Read the entire report from the Detroit News Website.