CAAM predicts upbeat future for Chinese car sales

China’s auto sales are expected to expand at a faster pace than the country’s economic growth in the coming years, said Dong Yang, general secretary of the China Association of Automobile Manufacturers (CAAM). His remarks indicate that sales in the world’s largest auto market would have an annual growth rate of at least 7% in the coming years, which is also the government’s target for economic growth from 2011-2015.
The upbeat assessment by Dong about the prospect of China’s auto industry in spite of the current slowdown stems from his belief that car demand in China will remain solid, because the country’s steady economic growth will continue to boost transportation volumes and will also help improve living standards. During an auto forum held in Shanghai, Dong said, “This year’s slowdown is the result of a couple of factors, including the economic slowdown at home and abroad, as well as the removal of government subsidies for smaller cars.”
According to data gathered from CAAM, the country’s overall vehicle sales which includes passenger and commercial cars, showed a modest 3.4% growth in the first nine months of this year, compared with a 4% increase last year, and double-digit growth in previous years. But Dong believes that sales will eventually improve: “Currently, there are more than 130 million registered motorcycles and 200 million electric bikes in China. It’s for certain that a large portion of the users will turn to the car market in the future.” He added: “Chinese customers have an extraordinarily strong thirst for a car.” (October 28, 2012)