China to Issue Modified Auto Industry Policy This Year

Home>>Business

Last updated at: (Beijing Time) Thursday, September 11, 2003

China to Issue Modified Auto Industry Policy This Year

China is expected to release a revised policy on the automotive industry later this year as preparations have basically finished, a senior industry official said Wednesday in Xiamen.

DISCUSSION

CHINESE

SEND TO FRIEND

China is expected to release a revised policy on the automotive industry later this year as preparations have basically finished, a senior industry official said Wednesday.

The new policy will be composed of 12 chapters on issues including policy targets, industrial policies and development plans, legal management of auto products, and technological policies, said Jiang Lei, executive vice president of the China Association of the Automotive Industry, at the ongoing Seventh China International Fair for Investment and Trade, which opened in the eastern port city of Xiamen on Monday.

The core of the new policy will be to work hard to turn China into a major world automaker by the year 2010, sticking to a 50-50stake in foreign joint-venture auto factories and to the system of examination and approval for the automobile whole-set production sector, guiding automakers in improving their own development capacity, building up name brands, and establishing their own sales networks, Jiang said.

The requirements on the localization of automobile production will be measured by "products with the characteristics of complete sets," he said, without elaboration.

According to the official, the new policy will be of great importance to strengthening the legal construction in the automotive industry, promoting the adjustments in product mix and industrial restructuring, boosting foreign cooperation and meeting the fast growing market demand.

China expects 25 percent rise in auto production, sales this year

More than 4 million automobiles are expected to be produced and sold in China this year, an increase of 25 percent year-on-year, the senior industry official said Wednesday. Of the total, sedans will account for 1.7 million to 1.8 million, soaring by 50 percent over last year.

China produced 2.08 million automobiles in the first half of this year, an increase of 34.13 percent on an annual basis, given the impact of the severe acute respiratory syndrome epidemic in some parts of the country, Jiang said.

Of the total, 895,500 were sedans, a jump of 103.53 percent, said Jiang. The automotive industry's half year sales increased 31.99 percent to 2.03 million automobiles, with sales income up 41.56 percent to 432.6 billion yuan (52 billion US dollars). Of the total, the sales of sedans jumped 82.44 percent to 842,800, he said.

According to Jiang, China imported 88,781 automobiles, including 53,441 sedans, in the first half of the year, up 50.45 percent and 78.08 percent year-on-year, respectively. Auto parts imports soared 132.84 percent to 3.21 billion US dollars.

Jiang attributed the sustained rapid growth of the auto industry, which began in 2000, mainly to the Chinese people's fast growing purchasing power, a huge market, the competitive made-in-China auto products, and the growing consumer confidence in China after its entry into the World Trade Organization.

Questions?Comments? Click here

China Sets to Put Brakes on Auto Industry

Chinese Government to Rationalize Auto Sector

When will the Immolation between the Jews and the Arabs Come to an End? ( 19 Messages)

Powell Says US-China Ties Best Since 1972 ( 10 Messages)

RMB Should Not Be Lumped Together with US General Election: Commentary ( 26 Messages)

Taiwan Huge Rally Opposes Lee Tung-hui's Split Plan ( 3 Messages)