Blogs

Home | Blogs
10 Million Vehicles to Hit Chinese Roads This Year
Aug 23, 2008

The domestic automobile sales in China are expected to grow at about 15% to hit around 10 Million vehicles in 2008, says CAAM.

Senior officials of CAAM (China Association of Automobile Manufacturers) revealed that the sales of domestic automobiles in China are expected to increase by nearly 15% to reach about 10 Million units in 2008, as reported by
XinhuaNet
.

According to CAAM, over 4.3 Million units were sold in the country from January to May 2008, an increase of around 17% over first five months of 2007. The sales of domestically-made vehicles reached nearly 8.79 Million units during the same period. Also, in May 2008, the sales volume of SUV (Sports Utility Vehicle), MPV (Multi-Purpose Vehicle) and saloon cars reached about 35,210, 16,592 and 377,698 units, an increase of around 43.2%, 8.8% and 15.3% respectively. The overall sales of passenger cars touched 524,920 units, a YOY rise of 18.1% in May 2008.

The industry experts said that the increasing demand for passenger cars in China is a significant reason for rise in automobile sales in the country. The continuous drop in vehicle prices with increase in disposable income and strong growth in the Chinese economy are encouraging many Chinese consumers, especially in urban and sub-urban mainland markets, to purchase new vehicles. Also, the demand for car is growing in the country as many consumers are interested in purchasing at least a car due to their rising status level.

M
oreover, the cost of automobiles is declining due to market saturation with continuous technological developments. Also, the emergence of various foreign players in the automobile industry of the country due to low cost of manufacturing are leading to an increase in competition in the market and resulting in drop in automobile prices in China.

Further, various government initiatives, such as those defining standards for environment protection, energy saving and security, are likely to lead to new technological developments and thus, reduction in the prices of automobiles in the country.

A Research Analyst at
RNCOS
said, “Declining automobile prices, increasing number of automobile models, expanding middle class base, and growing number of women buyers are leading to the growth of Chinese automobile industry. The growing automobile industry is not only attracting more foreign players but is also increasing stocks of foreign currency in the country, which is further fuelling the Chinese economy.”

Related Market Research Reports:
China Automobile Sector to 2010
Global Hybrid Car Market Forecast to 2010
Slovakia Automobile Sector Analysis