Our survey of 106 car dealerships in 22 cities nationwide points to a slowdown in sales volume growth in 2014, but a growing preference for larger cars among second-time buyers should continue to support robust industry revenue growth.

Despite slowing headline sales growth, manufacturers with exposure to fast-growing market segments, especially joint ventures manufacturing locally made foreign-brand vehicles, should continue to grow in the coming years.

Local commentators discuss the impact that China’s fight against pollution will have on the country’s electric car industry

DANWEI – The CEO of China’s P2P lending service is very bullish on the industry’s prospects for 2014, and considers 2013 as the “year one” of P2P financing. Also this week, Toyota recalls vehicles in China, a Chinese gold miner seeks to buy a Texan energy company, and more. In the Mai-Mai Index, we look at smartphone brands on Chinese social media.

DANWEI – Chinese media reported this week that cuts to incentives for new energy auto manufacturers and consumers will be moderated in 2014/15, and rumors have it that a Foxconn subsidiary will supply LCD panels to Tesla. In the Mai-Mai Index we compare mentions of Japanese auto brands with calls for a boycott of Japanese goods on Chinese social media in the first six weeks of 2014.

DANWEI – The gloves have come off in the war of words between China’s leading Internet executives as Alibaba and Tencent grapple for supremacy in online payments, while several Chinese IT firms have launched an anti-piracy lawsuit against search giant Baidu. Also this week: BYD tries to hype its new hybrid car, and US chipmaker Qualcomm set for troubled waters in China. 

Experts discuss the likely impact of a new subsidy scheme for electric and hybrid vehicles.

Domestic car brands are continuing to lose market share in China despite an acceleration in overall car sales in recent months, according to industry numbers and our proprietary surveys of 2,000 middle-class consumers.