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China - Domestic Auto Sales Rolling High
Sep 09, 2008

A robust demand for passenger cars and fast dropping prices of vehicles is expected to raise the Chinese domestic automobile sales by 15% to 10 Million in 2008.

An official from the China Association of Automobile Manufacturers (CAAM) said that due to strong demand for passenger cars in China, the sales of domestic automobiles are expected to increase by 15% to reach nearly 10 Million in 2008, as reported by
Xinhua.

The statistics showed that the production as well as sales of automobiles in the country was recorded at 4.3 Million during January-May 2008, an increase of 17% over the first five months in 2007. Moreover, China’s average monthly production and sales crossed 860,000 Units. In 2007, the automobile industry reached 8.88 Million in production and nearly 8.79 Million in sales. Also, the sales of passenger cars grew by 17.41% during January-May 2008 over the corresponding period last year.

The soaring demand for passenger cars is the major reason for robust growth in the Chinese domestic automobiles sales. Currently, a large number of Chinese customers are purchasing new cars as a drop in the prices of automobiles is encouraging them to buy new vehicles. Rising employment rate with increase in wages is also fuelling the demand for automobiles in the country. Also, the rapidly growing economy of China is providing the country favorable business conditions for the growth of auto industry.

Further, the Chinese auto industry is expected to grow at a fast pace as the government is planning to reconstruct it by giving standards on energy saving, environment protection and security. Also, the ability of large number of consumers to purchase vehicles will lead to further growth in vehicle sales.

According to a Research Analyst at
RNCOS, “Strong business environment is leading to a rise in the sales of the Chinese domestic automobiles. The growing auto industry is attracting a large number of foreign players to China and resulting in the overall growth of the economy. Also, the government initiatives for improving the country’s auto industry will provide enough growth opportunities to the Chinese auto manufacturers.”

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