China May Need 2.37 Million Vehicles This Year

China may, as forecasted, need 2.37 million vehicles this year, an increase of 30 percent over that of last year.

According to analysis, demands for sedans may see a fast pickup this year. China's sedan market has so far been equipped with necessary conditions for a fast growth. Although demands for coaches and taxicabs tend to be stable, yet private cars may have a large market. China's impending accession to the WTO may affect the potential demands for automobiles and there has been an insipid need for them in the recent two years. However, after China's joining the WTO, sedans may have a prospective market as predicted. What's more, China's WTO entry may spark off a downturn in automobile price, thus stimulating demands for some sedan cars. This year will see more and more new sedan cars of economic type vie on market. In view of these factors, needs for sedans may witness a fast growth to reach 720,000 with an increase rate of 13 percent higher than that of the rest vehicles.

In addition, demands for passenger coaches may go down by a large margin, but the need for light-and-mini passenger coaches will see a fast increase. It is estimated that China may need 850,000 passenger coaches this year, a rise of 13 percent over that of last year.

On the other hand, demands for trucks and lorries will rise. In the first place, foreign and domestic investors may go tapping for the massive western market, as some substantial policies will be carried out to cater to the great development in the west. This will instigate increasing needs for some cargo vehicles. Secondly, economic benefits in some enterprises and service industry may take a turn for the better as China's economy is booming up. This also will help boost the demands for lorries and trucks. According to a rough estimation, demands for cargo vehicles may go up, as compared with that of last year, to reach some 800,000, or four percent of the total.



By PD Online staff member Li Yan


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