China drives sales for global majors
- Source: xinhua
- [09:09 April 21 2009]
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Visitors look at a concept sports car of Geely at the Shanghai auto expo in Shanghai, east China, April 20, 2009. The 13th Shanghai auto expo opened Monday to the media. The event has attracted over 1,500 domestic and foreign automakers.(Xinhua/Pei Xin)
The China market beckons as a bright beacon for global automakers floundering in other choppy vehicle markets hit hard by the global financial crisis.
Overseas and domestic carmakers are showing off more than 900 models at the 13th Shanghai International Automobile Industry Exhibition, which has a total floor of 170,000 sq m - a fifth more than the previous event in 2007.
First-quarter vehicle sales in China grew by 3.8 percent year-on-year to 2.68 million units, enabling the country to outstrip the US as the world's biggest vehicle market, according to latest industry data.
The China Association of Automobile Manufacturers forecasts full-year vehicle sales to reach 10.2 million units, up almost 9 percent from last year.
Passenger car sales in the country will grow 7 percent to 6.1 million units, Yale Zhang, director of Greater China Vehicle Forecasts for US consultancy CSM Worldwide Corp, said on Monday.
His predictions are backed by auto majors.
"China's overall auto market may grow by 6 percent this year while the luxury segment will be double the growth," said Dieter Zetsche, chairman of Daimler AG and Mercedes-Benz.
The premium brand's China sales jumped 30 percent to more than 11,000 vehicles in the first quarter.
Nick Reilly, General Motors' Asia-Pacific president, on Monday said the group expects the China vehicle market to rise between 5 and 10 percent this year.
"From a long-term perspective, the local market will continue to grow by between 7 and 9 percent over the next five years," he added.
The Detroit-based company, which is struggling to avoid bankruptcy, sold 363,701 vehicles in China in the first three months of this year, an increase of 16.8 percent from a year ago.