China auto production to reach 16 million by 2012
- Source: Global Times
- [10:29 September 18 2009]
- Comments
On the back of government support and growing economy, the Chinese automobile industry is expected to see a robust growth in coming years.
Our recently published report "China Automobile Sector Forecast to 2012" has found that the auto sales in China surged to 7.2 million in the first seven months of 2009, up 23 percent from the same period last year, despite adverse business conditions emanated from the global economic slowdown. With the government’s supportive policies, the automobile production is expected to reach 16 million by 2012.
The Chinese government's stimulus measures have boosted the auto industry and it is set to stay robust in coming years. At the beginning of 2009, China's State Council unveiled a long-awaited support package for the automobile sector.
Under the plan, the government has lowered the purchase tax on cars less than 1.6 Liters from 10 percent to 5 percent in a bid to stimulate sales which were facing tough time due to recession. It has also allocated $ 730 million to provide one-off allowances to farmers to upgrade their three-wheeled vehicles and low-speed trucks to mini-trucks, or purchase new mini-vans under 1.3 liters.
In addition to the government’s stimulus packages and sales inducing policies, China’s real GDP growth, which was pegged at 9 percent in 2008 in spite of gloomy world economy, gave fillip to the automobile industry. Strong economic performance of China in the past few years (2004-2008) has given strong impetus to the economic condition of industries as well as individuals. During the period, the Chinese government concentrated on increasing the domestic demand by strengthening the consumption levels. This was one of the main reasons that attracted many automobile players towards the Chinese automobile market.
"China Automobile Sector Forecast to 2012" contains an extensive research and in-depth analysis of the automobile industry in China. It gives detailed information of the past progress of automobile market and its various segments, including passenger vehicle, commercial vehicle, utility vehicles, two-wheelers and auto component.
We have also done a comprehensive analysis of alternative fuel vehicle industry in China as well as its future outlook. The study evaluates the growth avenues available for the country's automobile market, which include motor insurance industry, steel industry, used vehicle market, automotive electronic market, biofuel industry, etc.
