The sales of passenger vehicles in China reached 10,3 mln units, showing a 59 percent growth, in 2009. This result wasn’t expected even by the most optimistic analysts in early last year. During the global economical crisis, particularly visible in the automotive industry, China took a first place in global ranking overtaking the longtime leader the United States. Total sales of all kind vehicles in China exceeded 13.5 million units (+44%), while in the U.S. was sold 10.4 million vehicles (-21%), the less number from 27 years.

The main cause of success was very quick government’s move which introduced a stimulus package to stimulate a sales of new cars in early 2009. It’s especially beneficial to purchases of passengers cars with an engine smaller than 1.6 liters. Reduced taxes, cheaper registration of green cars, the scrapping subsidies or special program for residents of rural areas, were the most popular forms of government’s help. Interestingly, buyers will received benefit from a stimulus package also in 2010, but in altered form. For example, the tax on the purchase cars with engine smaller than 1.6 liters has increased from 5 do 7,5%, but it’s still less than in 2008, whet it was 10%. People can still count on subsidies for farmers and subsidies for the scrapping old cars, which increased three times, maximum from 6 to 18 thousand yuan ($2,640).

Chinese automakers launched a record 221 new passenger vehicle models last year. A majority of them are upgraded models; only less than 50 are all-new one. New homegrown brand models numbered 120 in 2009, over half the total. Chinese automakers are expected to launch about 100 more new models in 2010. According to the Ministry of Public Security, until the end of last year, almost 200 million Chinese people are able to drive a vehicle, making up about 15 percent of the country's 1.3 billion population. "Natural demand will continue to expand in the next few years," said Lang Xuehong, chief auto industry analyst at Sinotrust.

Top10 passenger vehicles producers in China in 2009:
1. SAIC GM Wuling - 976 808 units,
2. Shanghai VW - 729 007 units,
3. Shanghai GM - 727 616 units,
4. FAW VW - 682 374 units,
5. Chang’an Motors - 654 467 units,
6. Beijing Hyundai - 570 880 units,
7. Dongfeng Nissan - 528 327 units,
8. BYD Auto - 435 633 units,
9. FAW Toyota - 435 512 units,
10. Chery - 432 962 units,

J.D. Power’s analytics predict that with further increase in the economy and stable price of oil, Chinese car market will grow of 6-7 percent in 2010. At the moment, one of the major problems of government is a fight whit smog and traffic jams. For example in Shanghai the figure of cars is stimulate by limited number of license plates, which the price - nearly $5,000 - very often exceeds the value of the vehicle.

Source: chinadaily.com.cn

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