Policies igniting rigid demand for automobiles
- Source: CCTV.com
- [16:08 July 30 2009]
- Comments
After a perfect start in the first half, the auto market has become the focus of both industry insiders and outsiders. Xu Changming pointed out that the history of the Japanese and Korean automobile markets show that a country's automobile market has two periods of rapid growth.
The first occurs when growing from 5 cars per thousand people to 20 cars per thousand, a period lasting approximately 5 years with annual sales growth averaging 30 percent. The second period occurs during a growth of 20 cars per thousand people to 100 cars per thousand people, a period lasting approximately 10 years, with annual sales growth averaging 20 percent.
Currently, this figure stands at 38 cars per thousand people and thus China is in the second period of rapid growth. "Policies to promote economic growth will continue in the second half, and the macro economy will also stabilize and recover, we expect that automobile sales for 2009 will reach 11.5 million units," said Xu.
