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October 25, 2010

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Home » Business » Auto

Auto sector needs a shift

AN official of one of China's top government think tanks called on Saturday for the readjustment of the nation's breakneck expansion of the auto industry as an explosion of new cars on China's roads aggravates problems with pollution and congestion.

Liu Shijin, deputy director of the Development Research Center of the State Council, told a forum that the government should shift its guidance from auto makers' mere pursuit of output capacity to environment-friendly and energy-saving targets.

Also, auto makers should boost their safety and quality control standards, he said.

Sales of domestically-made autos rose 36 percent year on year to 13.14 million units in the first nine months of this year, as lower-priced autos have become more affordable, according to data released by the China Association of Automobile Manufacturers on October 12.

Sales and production could exceed 17 million units this year, CAAM said.

Although the expansion has brought an industrial boom to the country and boosted domestic demand, it has also triggered widespread concerns over the country's energy capacity, pollution levels and notorious traffic jams.

Further, Liu said increasing social problems arising from the country's industrial boom has made its future development unsustainable, which is a test for the government. He also suggested government allow market forces to play a larger role in allocating resources.



 

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