China’s Auto Market Will Grow Even Further
Even though the Chinese automotive market is very big at the moment, one of the Chinese auto executives has predicted that it will double in size to 40 million units over the next ten years. This prediction was made by Dazong Wang who is the president of Beijing Automotive Industry Holding Co. For this prediction to come to life, it means that China’s annual rate of sales growth will only have to be 50% in comparison to the last ten years.
With these incredible figures, almost half of the worldwide car production will be concentrated in China. However, he said that the Chinese auto market will not follow Japan’s market and become a center of automotive manufacturing. He said that the Chinese automakers will be making most of the cars for the domestic market, not unlike Japan that focuses on global sales.
In the last ten years, coastal cities like Guangzhou and Shanghai had a very powerful growth and now it seems that also the inland cities are seeing a significant boom of an emerging middle-class who wants to buy better developed cars.
Due to the traffic congestions that create serious problems, the Chinese government is already capping the amount of registrations that they are allowing.
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