The 124 percent growth registered by China’s vehicle market in January (a total of 1.66 million vehicles have been sold in the country last month) continued last year’s strong ascending trend. Passenger vehicles sales increased by 110 percent in January, exceeding the 1.3 million units mark.
In 2010, Chery plans to sell 850,000 units, BYD aims to sell 800,000 units, Geely targets a sales volume of 400,000 units and SAIC Volkswagen expects to sell 829,000 units. Overall, Domestic brands have increased their 2010 sales target by 70 percent on average, while joint-ventures are planing a more moderate average increase of 20 percent. For example, General Motors China expects its sales to see a 13 percent growth during the current year, aiming to reach a total volume of 2 million units.
Last year, the Chinese automotive market saw a 45 percent increase, reaching a total figure of 13.6 million vehicles, thus overtaking the U.S. as the world’s biggest auto market for the first time in history. Sales forecasts for the current year show that China’s market will register a double-digit growth, exceeding 15 million units, as the country’s authorities have developed new subsidies programs, which encourage the purchase of new vehicles.
In 2009, China also became the world’s number one car-producing country. However, some analysts say that this might lead to a overcapacity issue.
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