China on Track to Become World's Largest Car Manufacturer

Keeping the same production output during these troubled times is a more than difficult task but even so, China is still aiming to become the world's largest automaker by the end of this year. The fight is more than close as the Chinese-based manufacturers managed to overtake the United States last year and is now putting pressure on current leader, Japan. According to motorauthority.com, China is expected to produce a total of 8.7 million vehicles this year, approximately one more million units compared to Japan's estimated output.

A thing worth mentioning is that China pretty much relies on its domestic market, with only a few models being actually delivered to export markets. Nevertheless, thanks to the increased coverage of Chinese automakers such as Chery and Shanghai Autos, China is continuously seeking for new limits, so more exports are expected this year as well.

China expects a decline of 6.5 percent in new car production this year but, compared to the overall forecasts, the country actually follows a steady trend. The aforementioned source says the global car markets is expected fell by more than 20 percent in 2009 which underlines once again China's ability to remain among the top manufacturers.

The first sign that China adopted an ascending trend is Chery's alegged bid for Swedish struggling automaker Volvo, despite the difficult market conditions the company currently encounters. Chery admitted it wants Volvo but insisted it won't compete with other bidders to acquire Ford's Swedish unit.

"We may consider a takeover if no one- no other Chinese automakers- are interested. We won't fight for it," Yin Tongyao, Chery chairman, said in mid-March.