After a decade of strong growth, the Chinese market for passenger cars will exceed 11 million units in 2010. According to analysis from Roland Berger Strategy Consultants, private vehicle sales in China will exceed 18 million units by 2015, but growth rates will decline substantially.
According to the report, the major drivers of future private vehicle market development are rapid GDP growth and rising disposable income. Although China's economy is still expected to grow considerably over the next few years, it will be faced with several significant challenges, such as currency appreciation, unsustainable stimulus plans, tighter monetary policy, unemployment and rising labor costs.
"China's private vehicle market experienced strong growth of 35 percent [annually] from 2001 to 2007, mainly driven by booming sales of private cars. The private vehicle market then slowed down in 2008 due to the global economic crisis," Roland Berger expert Marcus Hoffmann said.
Thanks to the government stimulus plan to boost automotive sales, growth of around 50 percent was achieved in 2009. Furthermore, market shares by vehicle segment, OEM brand and country of origin remained relatively constant during the period 2005 to 2009.
According to the Roland Berger forecast, private vehicle sales in China will exceed 18 million units by 2015. Despite this, growth rates for passenger cars in China are expected to decrease substantially.
Fast GDP growth and rising disposable income will be the two main drivers of car market development.
By People's Daily Online
According to the report, the major drivers of future private vehicle market development are rapid GDP growth and rising disposable income. Although China's economy is still expected to grow considerably over the next few years, it will be faced with several significant challenges, such as currency appreciation, unsustainable stimulus plans, tighter monetary policy, unemployment and rising labor costs.
"China's private vehicle market experienced strong growth of 35 percent [annually] from 2001 to 2007, mainly driven by booming sales of private cars. The private vehicle market then slowed down in 2008 due to the global economic crisis," Roland Berger expert Marcus Hoffmann said.
Thanks to the government stimulus plan to boost automotive sales, growth of around 50 percent was achieved in 2009. Furthermore, market shares by vehicle segment, OEM brand and country of origin remained relatively constant during the period 2005 to 2009.
According to the Roland Berger forecast, private vehicle sales in China will exceed 18 million units by 2015. Despite this, growth rates for passenger cars in China are expected to decrease substantially.
Fast GDP growth and rising disposable income will be the two main drivers of car market development.
By People's Daily Online
