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China to Produce 32 Million Cars in 2005
In 2005, China will produce 32 million cars, up 55 percent compared with the year 2000.
By 2005, the added value of the car industry will reach 130 billion yuan, or one percent of the national Gross Domestic Product, according to a blueprint released Wednesday by the State Economic and Trade Commission (SETC).
By that time, China will produce 11 million sedans, up 81 percent compared with last year.
In order to reach the goal, the Chinese government is relying on a regrouping strategy to foster two or three giant enterprise groups which can withstand the fierce international competition.
China will promote the development of 80,000 yuan economic sedans to satisfy household needs, said Su Bo, an official with the Industry Planning Department in SETC.
The government is also determined to readjust the taxation structure of cars and work out a unified national policy on car consumption. The measure to cut the red tape costs in the coming five years will boost the industry.
Meanwhile, China will create a better environment for the car industry. Experts estimate that by 2005, the roads, highways and expressways in China will be increased to 1.6 million kilometers, including 25,000 kilometers of highways.
Local governments have pledged to invest more in urban infrastructure construction. Parking areas will be built near residential areas, shopping malls and hotels.
According to the latest statistics, cars consume 85 percent of gasoline produced in China. The shortage of oil will become one of the main barriers to developing the car industry.
China will therefore increase the efficiency of gasoline production and encourage the use of small-engine and economy cars to seek sustainable development for the industry.
Su said that the strategy to develop western areas will create more opportunities for the growth of agricultural vehicles, trucks and construction vehicles.
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