China's auto market may face 'hard landing' in 2011

16:35, January 11, 2011      

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With production and sales both exceeding 18 million units in 2010, China secured its position as the world's largest auto-producing nation and auto market. However, that high growth may not be sustained in 2011.

With sales of 13.6 million units, China overtook the United States as the world's top auto market in 2009.

Industry insiders see the possibility of 10 percent to 15 percent growth in China's auto market this year, which is less than half of the 32 percent growth last year.

Dong Yang, executive deputy president of the China Association of Automobile Manufacturers, told China Business News that he was particularly concerned about diminishing market prospects in the first quarter of the year caused by increasing inflation pressure and the withdrawal of incentive policies. He estimates a slowdown back to 10 percent to 15 percent growth for the whole year.

A marketing executive with FAW, China's leading auto maker, is even less confident than Dong. He forecasted no more than 10 percent growth as long as the economy maintains 8 percent to 8.5 percent expansion.

That moderation is "normal" for Xu Changming, an official with the State Information Center, who argues that the overly fast surge in the passenger vehicle market in the last two years widened the gap with its upstream and downstream industries, making a slowdown inevitable.



By Li Jia, People’s Daily Online

(Editor:李佳)

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