China Economic Review, January 13, 2012
Car sales in China grew by only 2.5% last year as the government removed stimulus measures, while the US emerged to become the world's fastest-growing car market, the Financial Times reported. Car and light truck sales in the US grew by 10%, but sales of 12.8 million units were still far below the 18.5 million sold in China.
Analysts believe the slowdown in China sales was largely due to the withdrawal of tax incentives introduced in 2008; auto sales in China grew by 46% in 2009 and 32% in 2010. Foreign carmakers did better than average, with General Motors (GM.NYSE) posting a 8.3% rise, and Ford (F.NYSE) a 7% increase.
Analysts believe the auto market will rebound this year, though likely not to 2009 and 2010 levels. "Continued growth of the urban middle class, along with continued investment in China’s transportation infrastructure, will continue to fuel demand growth for the foreseeable future," said Bill Russo, head of Synergistics auto consultancy.
Click here to read this article at www.chinaeconomicreview.com
Car sales in China grew by only 2.5% last year as the government removed stimulus measures, while the US emerged to become the world's fastest-growing car market, the Financial Times reported. Car and light truck sales in the US grew by 10%, but sales of 12.8 million units were still far below the 18.5 million sold in China.
Analysts believe the slowdown in China sales was largely due to the withdrawal of tax incentives introduced in 2008; auto sales in China grew by 46% in 2009 and 32% in 2010. Foreign carmakers did better than average, with General Motors (GM.NYSE) posting a 8.3% rise, and Ford (F.NYSE) a 7% increase.
Analysts believe the auto market will rebound this year, though likely not to 2009 and 2010 levels. "Continued growth of the urban middle class, along with continued investment in China’s transportation infrastructure, will continue to fuel demand growth for the foreseeable future," said Bill Russo, head of Synergistics auto consultancy.
Click here to read this article at www.chinaeconomicreview.com
Even if the statistics show a decline within China, there's no doubt that many people still opt for used cars for sale rather than brand new ones.
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