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Apr. 26 (NBD) -- China's passenger car market is entering the mild growth era again with the expiration of purchase tax cuts for small cars with a displacement of 1.6 liters or below.

Data from the China Association of Automobile Manufacturers (CAAM) shows that 6.1 million passenger cars were sold in China in the January-March period, up 2.6 percent year over year. Of those, deliveries of 1.6-liter or smaller vehicles fell 0.4 percent to approximately 4.17 million units. According to the CAAM's projection, passenger car sales for the whole year of 2018 will grow by three percent to around 29.87 million units. 

It is impossible for the vehicle market to always maintain the fast growth, and zero or negative growth is an inevitable trend, Qi Yumin, party secretary and chairman of Brilliance Auto Group, told NBD. Auto manufacturers should get real and adjust the way of thinking, shifting their focus from sales volume to quality. 

Along with the slowdown in car sales, there will be a change in market pattern. 

Among indigenous brands, Geely Automobile Holdings Ltd delivered 386,300 cars in the first three months of this year, up 39 percent year over year. SAIC Motor Passenger Vehicle Company and GAC Motor also maintained a strong growth momentum, registering a growth rate of 54.2 percent and 22.73 percent, respectively. 

In contrast, Changan Automobile and Great Wall Motor Company didn't do well in the period. 

It seems the sales of carmakers have little to do with their business scale. It is the same case in automotive joint ventures. 

While Changan Ford and Beijing Hyundai reported a year-over-year drop of 35 percent and 17 percent, respectively, in sales in the first quarter, GAC Honda and FAW Toyota posted a rise of 16.77 percent and 5.44 percent, respectively. 

Business scale is an important, but not the sole index to measure a company's core competence, An Qingheng, director of the China Automotive Industry Advisory Committee, said to NBD. 

Cui Dongshu, secretary-general of the China Passenger Car Association, expressed a similar viewpoint, saying brand and product appeal is key to reshape the competitive pattern of the automotive market. 

Amid the mild growth of the market, competition will get fiercer and relatively weaker carmakers will face the risks of being weeded out. Improving brand and product attractiveness will be the top priority for them at present.  

Email: lansuying@nbd.com.cn