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To the surprise of many, China is now a major player in the world automobile market. Vehicle sales have risen 28% so far this year.
Full-year sales may reach 12 million vehicles, according to Chen Bin, director of the industry. Compare this to U.S. sales, which may reach 10.5 million this year.
As in the U.S., China has established incentives for its auto industry. With China's large population, demand for vehicles is growing rapidly, with much growth still in rural areas.
For the first eight months, vehicle sales have topped 8 million. There was an amazing 71% jump in July to 832,596.
U.S. auto makers are now focusing on China, with General Motors setting up a joint venture with China F&W Auto Group.
Warren Buffet has taken a stake in BYD Co., a Chinese maker of cars and rechargeable batteries.
Do you believe that the Chinese auto industry will overtake the Japanese auto market?
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Reader Comments (Page 1 of 1)
9-06-2009 @ 3:02PM
Terry Myers said...
There's a pretty dramatic difference between being a player in purchasing, and being a player in assembly.
China will certainly be a major player in purchasing, and I think it has been for quite some time. Both GM & Ford have outlined it as a more important market than the United States.
Being a major player in the development and assembly of the vehicles is a huge difference though. China, as it stands now, does not have a total quality control management style, or culture, which will always hold it back, especially in comparison to the Japanese auto makers.