China in fast lane to top world car sales
February 5, 2009
By Elaine Kurtenbach
China probably overtook the US in vehicle sales for the first time last month, a trend that could make it the world's largest car market this year.
Official data for China's January car sales will not be out until next week. But Zhang Xin, an analyst at Guotai Junan Securities, said yesterday that sales of about 790 000 units were expected for the month.
Mike DiGiovanni, the executive director of global market and industry analysis at General Motors, said late on Tuesday: "This is the first time that China has passed the US in monthly sales."
DiGiovanni projected that Chinese vehicle sales would hit 10.7 million units this year, more than the estimated 9.8 million unit sales in the US.
Autodata forecasts 2009 US sales at 9.57 million.
The latest trends suggest China may overtake the US sooner than expected, due to the drastic contraction in the US automotive market.
China passed Japan in 2006 to become the second-largest vehicle market, thanks to strong sales to the country's fast-growing middle class.
But China's car market has been cooling as consumers hold off on big purchases. January's sales fell about 8 percent from last January's monthly record 860 000 vehicles.
To prop up the industry, last month Beijing halved the tax on purchases of cars with engines less than 1.6 litres, to 5 percent, for this year.
Small cars accounted for nearly two-thirds of the vehicles sold in China last year, a trend policy makers are encouraging given worries over pollution and rising dependence on oil imports. - Sapa-AP
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