China’s economy continues to transform to a more sustainable growth driven by domestic consumption. Growth is expected to stabilise at 6.7% y/y in 2017 after the slowdown in 2016 driven by the accommodative fiscal policy and the recovery of external demand. In 2017, domestic consumption is expected to improve by 8.6% y/y from 8.4% y/y in 2016, and exports will rebound by for the second consecutive year. Over the next five years, China will continue to transition to a slower, but a more sustainable growth. Inflation is expected to stabilise at 2% y/y in 2017, and improve to 2.6% y/y by 2020. Credit growth will slow down reflecting the regulatory measures of the Chinese government and the cooling real estate market in tier-one and “hot” tier-two cities. Domestic demand will continue to strengthen even though at a slower pace. Over the next five years, China’s current account surplus will be declining steadily due to the increase in the imports of goods, and the continuing increase in tourism outlays.

01 EXECUTIVE SUMMARY 

02 SECTOR FORECAST 

03 SECTOR IN FOCUS

04 COMPETITIVE LANDSCAPE

05 COMPANIES IN FOCUS

06 REGULATORY ENVIRONMENT 

07 PASSENGER CARS 

08 COMMERCIAL VEHICLES