China Auto Sales Hit Global Record in 2010

Car Industry Is Likely to See Growth Fall Next Year as Subsidies and Tax Incentives End

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BEIJING (AdAgeChina.com) -- China was the world's biggest market for auto sales, up 32.37% to 18.06 million vehicles in 2010, including passenger cars, trucks and buses, according to the China Association of Automobile Manufacturers, far outstripping the 11.5 million vehicles sold in the U.S. for the second consecutive year.

Due to successful stimulus measures and a strong economy, Chinese bought 13.76 million passenger vehicles, including cars, sports-utility vehicles (SUVs), multi-purpose vehicles (MPVs) and minivans last year, up 33.2% year-on-year.

Sales in December 2010 hit a record high of 1.3 million units, as buyers flocked to cash in on expiring tax incentives for small cars and subsidies for trade-ins. They also wanted to buy before a quota goes into effect in 2011 in Beijing that could limit the number of cars sold in that city of heavy traffic.

The association's Secretary-General Rao Da believes China will probably record the first negative year-on-year auto sales growth in 20 years in 2011, however, because the ending of the tax and subsidy policies will heavily impact sales of small cars.

Analysts expect China's domestic automobile market will grow at 10 to 15% annually on average during the next five to 10 years.
Source: China Daily

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