Last year 13.5 million cars and light trucks were sold in China, making it the biggest car manufacturer in the world. This is not only due to China's large population, but also due to government incentives such as the slashing of sales taxes for smaller fuel efficient cars and the large amount of money spent on building highways and other public works, which in turn means more construction vehicles are need which also adds to the amount of vehicles sold.10.4 million cars were sold in the US last year (the lowest level for 27 years), which has negatively affected many car manufacturers of whom the US was their main market. However China's market grew by 45% year-on-year in 2009, providing a rare glimmer of hope for the world's beleaguered car manufacturers, such as General Motors, Volkswagen and Toyota. Total industry sales fell 21% in the formerly dominant US market, and Volkswagen has said that China is now its biggest market.
China was not expected to exceed the US market until 2020 but the speed with which the recession affected consumers in the States combined with incentives from the Beijing government to help buyers accelerate the trend.
Many economists believe that China's car sales this year could grow by another 20% so long as China's economic recovery continued and oil prices remained stable.
China was not expected to exceed the US market until 2020 but the speed with which the recession affected consumers in the States combined with incentives from the Beijing government to help buyers accelerate the trend.
Many economists believe that China's car sales this year could grow by another 20% so long as China's economic recovery continued and oil prices remained stable.
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