Blogs

Home | Blogs
2006 - A Year Of Emphatic Hike In China's Auto Market
May 03, 2007

In the year 2006, China's Auto Industry made a US$ 10 Billion profit, and has become the second biggest seller in world for the first time.

According to the figures by CAAM (China Association of Automobile Manufacturers), the auto industry in China made a US$ 10 Billion profit in 2006, a rise of 46% from the year 2005.

In 2006, the Chinese auto market sold 7.22 Million vehicles, an increased 25% over the year 2005, and China became the 2nd largest auto industry in world, by overtaking Japan.

The auto industry in China is very strong, and the Chinese government has consciously made efforts for the development of the sector. As a result the auto sector has become a key driver in the growth of China.

Foreign investment in China's auto industry has helped in its development. Due to increase in foreign competition, the country's auto groups, with the help of foreign technology, are encouraged for more growth.

In the next 5 years, a growth of around 15% per annum is expected in the auto part segment of China. The country also exports auto parts to the United States, and according to various industry experts, the growth rate of overall auto parts is likely to rise at the rate of 20% annually.

Being the world's 2nd biggest auto market, the auto penetration in China is just 2%. Presently, there is a vast space for growth of small cars. Small cars are affordable, cost-effective and favorable amidst the middle class society.

Among the auto companies in China, there exists remarkable growth in understanding the Chinese consumer. Local auto companies know the local choices and influence the knowledge allover the vehicle market, sales processes could achieve a much better position to maintain their consumers for a lifetime relationship.

The automotive industry in China is full of strong competitors and the industry will continue to be an active force - not just in China, but also in the global auto market.

Related Market Research Reports:
Turkey Automobile Sector Forecast (2008-2012)
China Automobile Sector to 2010
Czech Republic Automobile Sector