Trade and distribution inefficiencies reduce hold on sales to just 21pc
European passenger car makers, led by Volkswagen, have seen their hold on the mainland market cut by half in two years as Japanese, American, South Korean and Chinese rivals increasingly eat into market share.
Citing data from China Auto Monthly, Thomas Stanley, the director of KPMG's financial advisory services, said the combined share of European firms fell to 21.4 per cent this year from 40 per cent in 2003.
Meanwhile, the market share of Japanese companies rose from 21.9 per cent to 27.8 per cent, US firms 10.4 per cent to 13.3 per cent, Korean groups 4.9 per cent to 11.6 per cent and domestic players 22.8 per cent to 26 per cent.
Toyota, Hyundai and Peugeot Citroen gained market share among the foreign brands, while domestic players Dongfeng Motor and Chery, increased their hold on the market.
'The economy segment has been the fastest growing as consumers have been looking for cheaper options,' Mr Stanley said.
Volkswagen's share tumbled from 31 per cent last year to 15 per cent in the first nine months of this year.
