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China Now Second Largest Vehicle Market After United States
May 03, 2007

Selling 7.22 Million vehicles in 2006, China has emerged as the second largest vehicle market after United States.

China overtook Japan to become the world's second largest market for new vehicles in 2006, next only to the United States, an industry association said to the
Financial Express on January 11, 2007.

The country sold 7.22 Million new vehicles in 2006 that was a YOY growth of 25.13%. However the automakers of the country had produced 7.28 Million vehicles in the year 2006, 27.32% up from the previous year (2005).

Chery Automobile co. was the biggest vehicle manufacturer in China with 272,400 cars sold in the year 2006. The Chery Automobile co. & Daimler Chrysler AG also announced a plan for the Chinese company in the month of December to manufacture small cars for sale globally under the Chrysler, Dodge or jeep brands.

Increasing sales of passenger cars remained the main reason of rising Auto sales in China. The sales reached 5.18 Million units, rising by 30.2%, while the production reached 5.23 Million that was 32.76% up from 2005. The production of commercial vehicles increased by 15.25% to 2.05 Million in year 2006, although sales reached 2.04 Million up 14.23%.

About 325,000 vehicles were exported by Chinese Automakers in year 2006 and 80% of the vehicles were buses & low-cost trucks. In 2006 the total sales of trucks & cars in United States totaled 16.5 Million, a little bit down from the previous year.

In China, the sales of new auto vehicles were three times higher than the sales of old autos. But, in US the sales of old autos remained two to three times higher than the new ones.

As per a research Analyst at
RNCOS, "China may beat United States in coming years as presently China's annual income per person is just over $1,000. And, with the increase in their per capita incomes they will surely like to buy more vehicles."

The United States is still the biggest car market in the world. However, China is Eager to break in to the United States market but China will have difficulties meeting safety & environmental standards.

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