China's Car Industry On Fast Track
- By:James Marriot
The tremendous growth in the automobile industry in China has far exceeded the expert predictions after the country gained entry to the WTO in 2001.
Even if large numbers of foreign automakers are entering the China auto market giving stiff competition to the domestic carmakers, China is has been successful in establishing itself as a prominent market in automotives. Overseas carmakers are taking advantage of the potential of the car market with cost-competitive car-models.
China, today is the world's second-biggest market for automobiles. Growing maturity accompanied by increasing sales is China's paramount way to go ahead in the world auto market.
Globally, China is the second-largest market for passenger cars. The sales of passenger cars are expected to touch four million in 2006. However, previously just about one-fourth of Chinese customers had owned a vehicle.
Chinese car market grew largely in 2006, compared to the low growth over the years 2004 & 2005. China's automakers sold vehicles in excess of 6.45 million units, together with both commercial vehicles and passenger cars, till November 2006, a rise of 25 percent in 2005.
Producers of automobiles are rapidly recognizing Chinese customers as potential customers. More and more automakers are driving into the China auto market making competition stiff and costs of automobiles plunge.
According to RNCOS report on China Automobile Industry, the unpredictability of the Chinese consumer is a major concern for the manufacturers. The Chinese customer is not known for brand loyalty and the falling prices of the products have further added to their unpredictability.
For further information about China Automobile Industry please read the report "China Automobile Industry Forecast (2006-2010)" published by RNCOS at
http://www.rncos.com/Report/IM050.htm
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