CHINA: Market could see 10% growth this year
China’s car market may rise up to 10% this year despite fears of more government policies to limit car ownership, reported the South China Morning Post.
Sales last year rose 4.3% to 19.3m, half the forecast of 8-10% by the China Association of Automobile Manufacturers which sees average growth of 7% this year in light of the improving mainland economy and stabilising fuel prices.
The Chinese government is, however, trying to cap growth in car ownership because of worsening traffic jams and pollution. Consultantcy LMC Automotive told the newspaper that if commercial trucks - which made up less than 2% of the market - were excluded, the growth could reach 10% in 2013.
According to sales figures released by the top 25 carmakers in China, only 10 hit their 2012 sales target. Foreign carmakers, however, showed no signs of slowdown in their expansion.
Hyundai plans to overtake the joint venture between General Motors and SAIC by selling 1.47m cars this year. SAIC and GM, meanwhile, are expected to raise this year's sales target to 1.45m. The major foreign and domestic players are building new plants and finding new partners to boost their capacity and share in what is now the world's biggest car market.