According to a J.D. Power and Associates estimate cited by Autonews, the Chinese market has grown in 2010 by about 30 percent, an appetite fueled by the government’s incentives. The same study predicts that the Chinese market has reached its growth capacity and the 2011 figures will show a more moderate growth. On the other hand, the same was expected to happen in 2010.
The Chinese market absorbed 1.5 million units light vehicles in October alone, bringing the total seasonally adjusted annualized rate to 19.2 million units (for the record, the same figure for the US market, the former largest auto consumer, showed a 12.2 million vehicles rate for the month in November, probably its best).
The growth for the remainder of the year is expected to continue, as customers will probably make a last attempt to take advantage of the incentives which are about to expire.
General Motors, Volkswagen, Ford and pretty much all other manufacturers present in the country are planning to expand their operations in the months and years to come. GM has setup its own local brand while Ford is expanding the dealership network.
Meanwhile, the Chinese carmakers are looking at export markets as the next logical step in development. Several Chinese companies have either purchased foreign carmakers, or announced plans to sell their products on the European or the North American market.
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