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SHANGHAI

Growth of Chinese Auto Ownership Creates Opportunities for US Automakers

Jones Lang LaSalle hosts “China–US Auto Summit” in Detroit


The Chinese automotive market is on a path towards exponential growth, creating opportunity for Detroit-based automakers, according to speakers at the China–US Auto Summit event hosted by commercial real estate firm Jones Lang LaSalle. Peter Mok, CEO of Plainvim International Ltd, a Chinese industrial real estate development company concentrating on China’s automotive industry, predicted that car sales are set to soar to 50 million units by 2020, up 316% from 12 million in 2009 with an annual average increase of 11.5%.

The event in Detroit brought together US automotive suppliers and manufacturers to gain insight into China’s rapidly expanding auto industry. It highlighted the tremendous potential for US auto firms to grab a foothold in the rapidly expanding and lucrative China market.
Xue Zhong Miao, CEO of China-based Zhejing GoNow Auto Inc, explained that while worldwide car ownership currently stands at 8 people per car, and as high as 1.5 people per car in the US, in China, which has a population of 1.3 billion, the average is a mere 26.3 people per car. This number underscores the enormous potential for car manufacturers and suppliers. Miao, whose firm produces SUVs and pickup trucks, has seen 50% growth in sales this year and is targeting the rural demand for minivans, another lucrative market of 900 million potential buyers.

“The growth of car ownership in China presents such huge potential for US automakers and manufacturers,” said Craig Meyer, Head of Industrial at Jones Lang LaSalle North America. “Many US firms are looking to partner with Chinese companies or enter the China market for a mutually beneficial exchange. It is a global market, and US firms realize that they have to be global players in order to succeed.”

 “Given this global trend, we expect strong demand for modern industrial facilities from these global automakers, both in state-of-the-art manufacturing facilities and supporting logistics distribution centers,” noted Stuart Ross, Head of Industrial at Jones Lang LaSalle China. “Our team in China has been working closely with our US counterparts in advising US automakers to source appropriate real estate solutions here.”

Signature speaker Steve Forbes, chairman and CEO of Forbes Media and editor-in-chief of Forbes magazine, highlighted how China’s economy has emerged virtually unscathed from this year’s turbulent economic climate, owing in part to the government’s stimulus package.

About the event sponsor: Plainvim International Ltd

Plainvim International Limited is an investment company specializing in industrial real estate projects in China.
Plainvim is engaged in industrial real estate development, electronics production, project investment, project collaboration, project consultation, equity investment, and other businesses. Plainvim’s investment in China covers the three major economic engines of mainland China’s economy: the Tianjin region, the Shanghai region, and the Guangzhou, Dongguan, Shenzhen region, including the investment, development, and operations of more than 3 million sqm of automobile industry supplier parks. Plainvim has a strategic alliance with the Guangdong and Jiangsu provincial governments and other government agencies.