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Is China Auto Sales Hit 50 million per year by 2020. A Chinese official Thinks So.
Two models stand next to a red car flag L5 at the International Automobile Exhibition in Beijing 2014 China International Exhibition Center April 22, 2014 in Beijing, China After selling more than 20 million motor vesicles the last year, a Chinese official think China could buy 50 million new 2020 picture Feng Li Getty Images cars.
China was the largest car market since 2009, the world and if officials are correct, it's going to stay that way indefinitely because it appears as a major economic player with a growing population of urban consumers with money to spend last year, Chinese bought Jan. 22 million new passenger cars, sport utility vehicles, light trucks and commercial vehicles, compared to the 15 6000000 purchased in the U S.
As the house nearly one in five people on Earth continues to expand its middle and upper classes, the growth will continue even if fewer Chinese own cars compared to developed markets, said Liu Shijin Deputy Minister of Research Center development of the State Council, the body responsible for policy research.
My logic is like that now 1000 people in the United States has 800 vehicles and 1,000 Europeans 600 vehicles While we Chinese are frugal and 1,000 people own 400 vehicles from 2018 to 2020, it would be at least 50 million new year auto sales, Liu said china Daily Liu believes that China's auto market has won peak t for four to six years.
To put this in perspective Chinese bought Jan. 22 million new motor vehicles last year compared to 15 6 million in the United States, the world's No. 2 auto market in terms of sales volume for les six first months of 2014, auto sales in China grew 9 percent from the same period last year compared to 1 of 1 percent growth in the U S.
If this pace continues, China could be about halfway to that mark of 50 million by 2015 to reach 50 million by 2020 would require a much faster rate than today, but China people certainly enough to stimulate the consumption Currently, about 85 percent of Chinese car buyers pay cash, according to the China Association of automobile manufacturers so that the car loan potential is enormous.
But Chinese domestic producers, such as SAIC Motor Dongfeng Motor Corp. and FAW three major car manufacturers in the country, are losing market share so that domestic producers still dominate, the cars they make are small margins and unpopular Chinese consumers who can Marqués allow foreigners to buy.
Sales of domestic brands fell for the tenth consecutive month in June, according to the latest sales data from CAAM Great Wall Motors, one of the few Chinese automakers that experienced modest success selling cars in the world, said last month that it has delivered half the cars in the first six months of the year largely due to a sharp decline in domestic demand.
FRA Volkswagen AG and General Motors Co VOW3 NYSE GM, which came in there for decades Chinese market, are the largest foreign automakers foreign automakers can form joint manufacturing companies with up to three Chinese national manufacturers, allowing them to reduce their operating costs by producing their cars inside the country.
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