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The financial turmoil doesn"t only dampen consumer confidence but also accelerates the restructure of domestic auto industry.
Zhong shi, an independent auto industry analyst, says "Petroleum maintains vehicles" blood while finance poles the industry"s bones. The industry unavoidably stepped into a downturn after being hit by US subprime crisis."
According to Zhong, indirect effects caused by the financial turmoil are spreading gradually. As exports are a very important part of China"s economic growth, the manufacturing and service business will certainly be affected by western countries" decreasing demands. The shrinking of national auto consumption will accelerate competition and restructuring between automakers. China"s first large-scale auto industry reshuffle is at the corner.