US carmakers fight for Chinese market

This week's Shanghai's motor show will see crisis-hit US carmakers General Motors and Ford battle Chinese manufacturers for sales on the Chinese market, which has been the world's largest for three months now.Troubled US auto giants will square off against Chinese newcomers in Shanghai this week as they try to pull ahead in what has suddenly become the world's number one car market.Despite seeking government life support at home, Ford Motor Company and General Motors Corp had banner months in China, which has overtaken the United States to be the world's largest auto market for three months running.But Chinese manufacturers such as Geely and Chery also had strong months and, sensing blood in the water, they see a chance to break out as global names."The economic slowdown offers real opportunities for Chinese domestic car makers," said Klaus Paur, automotive director for research firm TNS China, ahead of Monday's start of the Shanghai international auto show.Government incentives, such as tax rebates on smaller engine cars, helped drive China's auto sales to a monthly record of 1.08 million units in March.Vehicle sales in the first quarter rose almost six percent from a year earlier to 2.64 million units, according to official figures.Despite strong first quarter sales, 45 percent of prospective car buyers in China postponed purchases due to concerns over the economy, and a quarter have cut their budget, according to a TNS survey of more 1,000 mainland consumers.These factors favour Chinese carmakers, who typically make cheaper vehicles than their foreign competitors, according to Paur.