China leads the vehicle world on dual fronts
Source: Xinhua |
January 12, 2010, Tuesday
|
Print Edition
Print Edition
CHINA has overtaken the United States to become the world's top auto maker and market in 2009.
The China Association of Automobile Manufacturers said yesterday annual sales rose 46.15 percent year on year to 13.64 million units. Output increased 48.3 percent to 13.79 million units.
Passenger car sales were up 52.93 percent to 10.33 million units, and production was 10.38 million units, up 54.11 percent year on year.
The brisk sales in China are in contrast with the US where 10.43 million units were sold last year, 2.8 million less than in 2008, as the global financial crisis kept consumers out of the showroom.
The three top brands last year were Shanghai Volkswagen, FAW Volkswagen and Shanghai General Motors - all joint-venture brands between Chinese auto makers and German or US counterparts.
"China's market still enjoyed abundant potential, as living standards improved and the average auto ownership remained low," said Dong Yang, CAAM deputy chairman.
The industry would continue to see rapid growth in the next decade as it had become a pillar of the national economy, he said.
To boost the sluggish auto market and spur the use of clean and fuel-efficient cars, the central government announced in January last year that it would halve the purchase tax to 5 percent on vehicles with a displacement of 1.6 liters and below.
Rural consumers got up to 5,000 yuan (US$735) in subsidies for vehicles with a displacement of under 1.3 liters.
The annual revenue from auto purchase tax was expected to surpass 110 billion yuan, a rise of 10 billion yuan year on year, as more units were sold, analyst said.
Besides policy incentives, the underlying reason behind the sales boom was that the consumption structure was improved while housing and traveling costs increased, said Yao Jingyuan, chief economist with the National Bureau of Statistics.
Brisk sales in China also allowed the world's leading auto makers to report double-digit growth in China last year despite bleak pictures in other parts of the world.
The China Association of Automobile Manufacturers said yesterday annual sales rose 46.15 percent year on year to 13.64 million units. Output increased 48.3 percent to 13.79 million units.
Passenger car sales were up 52.93 percent to 10.33 million units, and production was 10.38 million units, up 54.11 percent year on year.
The brisk sales in China are in contrast with the US where 10.43 million units were sold last year, 2.8 million less than in 2008, as the global financial crisis kept consumers out of the showroom.
The three top brands last year were Shanghai Volkswagen, FAW Volkswagen and Shanghai General Motors - all joint-venture brands between Chinese auto makers and German or US counterparts.
"China's market still enjoyed abundant potential, as living standards improved and the average auto ownership remained low," said Dong Yang, CAAM deputy chairman.
The industry would continue to see rapid growth in the next decade as it had become a pillar of the national economy, he said.
To boost the sluggish auto market and spur the use of clean and fuel-efficient cars, the central government announced in January last year that it would halve the purchase tax to 5 percent on vehicles with a displacement of 1.6 liters and below.
Rural consumers got up to 5,000 yuan (US$735) in subsidies for vehicles with a displacement of under 1.3 liters.
The annual revenue from auto purchase tax was expected to surpass 110 billion yuan, a rise of 10 billion yuan year on year, as more units were sold, analyst said.
Besides policy incentives, the underlying reason behind the sales boom was that the consumption structure was improved while housing and traveling costs increased, said Yao Jingyuan, chief economist with the National Bureau of Statistics.
Brisk sales in China also allowed the world's leading auto makers to report double-digit growth in China last year despite bleak pictures in other parts of the world.
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