Many automobile companies at the ongoing Guangzhou Auto Show revealed that an overall sales growth of 5% to 10% is expected in China's automobile market in 2012, much more in comparison to the current year's slow growth of only 3%. Senior executives from car companies at the event have expressed that they have complete confidence in China's car market.
President and Chief Executive Officer of Volkswagen Group China, Kar-Thomas Neumann said, “Volkswagen sales in China are expected to rise 15 percent year-on-year to exceed two million units, for the first time, by the end of 2011.”
The Chinese car market has witnessed considerable growth from 2001 to 2010. The annual sales have increase more than seven times to over 18 million last year. This major sales boost is attributed to the robust demand for private cars along with stable economic growth.
According to Neumann, China's market is expected to maintain the steady growth after the effective macro-economic controls of the government, which brought down the consumer price index and improved the situation in the housing market. “The great potential demand for cars in the second and third-tier cities would further bolster the growth of the auto market in China, where there are currently only about seven cars per hundred persons,” added Neumann.
Furthermore, Neumann foresees a sales boost of 8% to 10% next year for passenger cars in China's car market.
Executive Vice-President of Guangqi Honda Automobile Co. Ltd, Yao Yiming said, “China's auto industry needed a cooling-down period after developing too fast in the past two years as both production and sales doubled.” Yao also added that the current year was an adjustment period for the car market of China and expects a growth of 5% to 10% in 2012.
A private China-based car maker, Geely Motor also anticipates a steady sales increase during the next year. The company's Vice President, Liu Jinliang said that it is expecting to experience a consistent growth in car sales of more than 5% in 2012.
Thus, favouring several car manufacturers, the next year for the China's automotive market is expected to have a steady sales growth.
