Automotive Industry Faces Challenge in 2008
2008-06-17 Source：english.chinabuses.com
Though the year ahead is widely expected to be "China's most difficult year", the country's automotive market retains a torrid pace of growth. Government efforts to slow the economy and curb skyrocketing fuel prices and the rising uncertainty with the overall economy have done little to deter the enthusiasm for buying among China's newly rich consumers. This will likely change as we move forward into 2008, as the challenges faced by the market grow.
Experts certainly expect China's automotive market to continue to expand this year, but at a slower pace than 2007, meanwhile, vehicle demand in China to grow to 9.2 million units in 2008. Of concern is an increasingly challenging business environment in China. Premier Wen Jiabao was quoted earlier this year as saying 2008 would be "China's most difficult year".In the long term, China's vehicle market to continue to grow as economic development continues to spread across the country. Annual light vehicle sales are expected to reach 17.3 million units by 2015, with the annual rate of growth slowing sharply to single digits as the market becomes more mature. By then, the market to comprise 12.4 million passenger vehicles and 4.95 million light commercial vehicles. In 2008, light commercial vehicles are expected to grow just slightly lower than the passenger vehicle market, 13 percent versus 14.9 percent respectively. The demand for light commercial vehicles reach 3 million units this year and demand for passenger vehicles to grow to 6.2 million units.
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