China to Increase Car Output 12 Per Cent This YearChina is expected to turn out 650,000 sedan cars this year, up 12 per cent over last year, according to estimates of the China Commercial Information Center.The center estimates that domestic demand for cars will rise by 10.7 per cent to 620,000 this year. The center said that imported cars will not affect the dominance of domestic cars because local cars are mostly priced under 100,000 yuan, and it is the car-part companies that will suffer from imports. The center estimates that China's car imports will be around 60,000 this year, most of them luxury sedans. Auto prices are expected to decline as producers and retailer try to reduce their mounting inventories, and as China awaits imminent entry into the WTO. The center said that about 80 per cent of all car buyers will pay fully in cash, while the rest will choose payment of installments. |
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