GM Chinese Dealer - No Inventory, Lots of Buyers
Minivan salesman Zhu Yi has no cars to sell although the number of buyers is increasing. He says that growing numbers could continue in 2010 if parent manufacturers have the ability to align production with market demand.
"Sales are exploding," says Zhu according to the Detroit Free Press. "We simply don't have the cars people want. Sales could be climbing even faster."
As this impressive growth was mostly a result of government subsidies, market analysts are predicting a similar strategy next year as a potential collapse of the auto sector would be too risky.
"The message sent by the government is that they will not let the auto industry weaken, especially not in 2010," said Jia Xinguang, chief analyst at China National Automotive Industry Consulting & Developing Corp., an investment management company.
Earlier this month, China officially became the number one auto market as sales in the country exceeded 12.7 million cars and trucks, a figure which translates into a 44 percent growth as compared to the previous year and is 23 percent greater than the 10.3 million forecast for the U.S. market, according to J.D. Power and Associates.
The numbers are by far exceeding J.D. Power’s reports issued earlier this year, which estimated a sales figure of just 9 million vehicles for China and indicated 2025 as being the year in which this country will overtake the US in terms of automotive sales.