Chinese auto sales and production volume to reach 21 million units in 2011

Sales and production of vehicles in China will increase 20 percent, reaching 21 million units, and second-hand vehicle trade volume will surge to over 5 million units in 2011, according to a forecast report published by a research institute on Chinese auto market.

In respect to the public's suspicion on whether the target is reachable, an expert explained that although the purchase tax preferential policy on low emission cars and other subsidy policies will be cancelled this year, the new energy vehicle subsidy policy will continue to be carried out, and demand of vehicles priced at about 100,000 yuan ($15,102) is to remain firm, all of which can ensure (prior to happening) that the target is more than reacheable.