China’s car market likely to double in size over the next decade

Article by Christian Andrei, on January 15, 2011

It’s “realistic” for China’s vehicle market to double in size over the next decade, according to Wang Dazong, president of Beijing Automotive Industry Holding Co. At the Automotive News World Congress, Dazong estimated that by 2020, the annual sales of cars, buses and heavy trucks may total 40 million units.

In 2010, sales totaled 18.3 million units. Wang noted that this would result to an 11% annual sales growth or less than half the 24% annual growth rate of the past decade. Wang explained that if this projection comes true, nearly half of global vehicle production would be focused in China.

But while Dazong thinks that Chinese products will be seen on a global stage, he doesn’t think that China will follow Japan and will become a major vehicle exporter. Wang estimates that China will make up 50% of the world's sales volume, indicating that automakers will build vehicles in China for the domestic market.

In the last decade, auto sales have been propelled by the demand seen in rich Chinese coastal cities such as Shanghai and Guangzhou.

Currently, a growing middle class has been observed in China's less prosperous inland cities. In the past, low-priced cars sold by domestic Chinese automakers such as Geely Automobile Holdings Ltd. and Chery Automobile Co. were preferred by the price-sensitive customers in inland markets.

Topics: china

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries