China's Auto Market Welcomes Spring With Increased Retail Sales

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Last updated at: (Beijing Time) Friday, March 15, 2002

China's Auto Market Welcomes Spring With Increased Retail Sales

Retail sales of automobiles in China in January and February increased by 20.9 percent and 21.1 percent year-on-year respectively, after over three successive months of drop since last October, official figures showed. NBS said the strong national desire for car ownership has helped boost sales as has the government's removal of limitations on the personal purchase of automobiles.

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Retail sales of automobiles increasing

Retail sales of automobiles in China in January and February increased by 20.9 percent and 21.1 percent year-on-year respectively, after over three successive months of drop since last October, official figures showed.

The National Bureau of Statistics (NBS) announced Thursday that this year retail sales of automobiles grew 21.7 percent in the first two months, compared with the same period last year.

NBS said the strong national desire for car ownership has helped boost sales as has the government's removal of limitations on the personal purchase of automobiles. In addition, since the end of last year there has been a sliding scale for automobiles prices.

Consumable goods market go smoothly

NBS figures show that China's consumable goods market went smoothly in the first two months of this year, and retail sales were higher than last year because of increased domestic demand.

During January and February, retail sales reached 692 billion yuan (about 83.6 billion US dollars), up 8.5 percent on the previous year, with retail sales in January up 7.9 percent, and in February when the spring festival took place, they rose 9.1 percent.

Auto Market Demand to See Blaze

Domestic Demand

Since the Chinese auto credit market is opening up to non-banking foreign institutions in line with the country's WTO commitments, Chinese people's passion for cars will be further fired.

Convenient Credit Services

In 2001, The Shanghai Branch of China's Industrial and Commercial Bank alone granted loans worth 2.16 billion Yuan (about US$253 million) to help local people purchase 18,000 automobiles.

Improvement of Traffic Conditions

The country's traffic conditions have undergone a gigantic improvement which has greatly enhanced people's interest in auto purchases.

Purchasing Strength

A survey conducted by the America-based General Motor reveals that seven million Chinese households can now afford to buy their own cars. By 2005, the proportion will rise to 42 million. By 2010, China will become the world's third largest automobile market after America and Japan.

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