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Chinese Roads: Flooded By Car Passion
May 03, 2007

The privately owned cars sales in China have reached to 22 Million in 2006, and the country is witnessing a strong economic growth, the craze among consumers for new cars is still on.

More than 4 Million private owned vehicles were running on Chinese roads in the year 2006, which brought the total number of new privately owned cars in the country to 22 Million.

The ongoing craze of cars in China is fueled by the country's enormous economic growth. Since the year 1990, Chinese economy has doubled, thereby, boosting the living standard of people in big cities and increasing the wish of a contemporary consumer society.

For this new emerging class of modern consumers, car is the first commodity on the purchase list. There has been a tremendous growth in the Chinese car purchase market, ever since 2000. Passenger cars today account for nearly half of the country's total production of automobiles.

Privately owned vehicles presently account for nearly 66% of total vehicles in China. Only around One Million old vehicles were retired in 2006, thus the rate at which new cars is being sold is steadily rising. As per experts, the private car ownership in China will keep on rising in the next decade too, as the country has become the fastest growing automobile industry worldwide.

Meanwhile, the car-manufacturing sector of China is also growing rapidly. In the year 2006, the country exported over 0.34 Million vehicles and about 0.23Million new cars were imported. According to the data from the China Association of Automobile Manufacturers, the vehicle-makers made a US$ 9.9 Billion profit in 2006.

China, the largest nation in world, is increasingly drawing attention for fast rate of motorization. Although the rate of vehicle ownership in the country is low when compared with the developed countries' standard, it is rising at a very quick fast rate.

Almost every major international carmaker has formed joint venture with domestic car manufacturers of China. The Government is also promoting car making as a "pillar industry". People want increased mobility and the govt. wants to generate more jobs & also more industrial investment. The vehicle industry is capable of delivering both, that is, jobs and investment, and truly is a hallmark in China's economic development.

It is estimated that by the year 2020, there will be 140 Million vehicles on the roads of China and the figure will increase further to 250 Million (i.e. the present number of vehicles in US) by 2040, as published on
PowerMarketers. It is very much possible that China could double these figures in future and thus attain the level of American prosperity.

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