Sales surge, but congestion concerns rise

08:35, November 15, 2010      

Email | Print | Subscribe | Comments | Forum 

China's vehicle sales increased 25.5 percent in October compared to the same month last year, pushing the 10-month tally beyond the full-year figure for 2009.

According to the China Association of Automobile Manufacturers (CAAM), 1.2 million passenger cars and 340,000 commercial vehicles were sold last month.

Nearly 70 percent of the passenger vehicles purchased in October had engines with a displacement of 1.6 liters or smaller, a result of government subsidies and tax breaks for energy-efficient vehicles, said CAAM spokesperson Zhu Yiping.

According to the association, total vehicle sales in the first 10 months jumped 34.8 percent to 14.7 million, surpassing the 13.6 million domestic deliveries last year.

Passenger car sales between January and October totaled 11.1 million vehicles, surpassing the 2009 figure of 10.3 million.

SAIC Group was again sales champion among domestic carmakers with nearly 3 million vehicles purchased in the 10 months to October.

Following it were Dongfeng Motor Corp, FAW Group and Chang'an Automobile Group, which reported sales of 2.21 million, 2.07 million and 1.92 million respectively.

Also among the top 10 were BAIC Group, Guangzhou Automobile Group Co, Chery Automobile Co, BYD Co, Brilliance Auto and Jianghuai Automobile Co.

CAAM previously lifted its expectations for 2010 full-year vehicle sales to 17 million following explosive growth in September.

Analysts are generally convinced that China's auto market will continue to grow rapidly in the next five to 10 years due to accelerating urbanization and increasing individual wealth.

Yet they warn competition is expected to become much fiercer, especially for homegrown brands.

According to CAAM, domestic brand cars now only account about 30 percent of the sedan segment where foreign brands prevail.

Even the low-cost car segment traditionally dominated by homegrown brands is now a target of foreign companies as they begin to produce models priced around 60,000 yuan - like the Chevrolet Sail and Nissan March - at their local joint ventures.

Yet a drag on the overall optimistic outlook is concerns about pressure on infrastructure and the environment from increasing numbers of vehicles on the road.

According to Dong Yang, secretary-general of CAAM, more vehicles won't necessarily result in these problems.

Auto manufacturers should continue efforts to reduce energy consumption and carbon emissions, he said, adding that the environment in many cities has actually improved despite increasing numbers of automobiles.

He said the auto industry should not be blamed for congestion in big cities because the right approach is to develop public transport and improve city planning.

Source:China Daily


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion