It is estimated that
China totally needs 5.8 million automobiles this year, a rise
of 12 percent year-on-year, including 2.75 million sedan cars,
a growth of 17 percent, said Xu Changming, director of the economy
consultation office under the State Information Center.
The auto industry will continue to decline in the
first half of this year, but with a slower speed, then a gradual
rebound can be expected in the latter half, according to a report
by the Research Department of Industrial Economy, Development
Research Center of the State Council. The report predicted a growth
speed between 15 and 20 percent this year, with total production
and sale nearing 6 million vehicles.
The price cuts continued into this year will help
boost consumption, Xu analyzed, as a survey by the Center indicated
that 63.8 percent respondents believed price cut was the biggest
incentive for them to buy a car. "Price cutting is still
the most competitive promotion way", Xu said, believing the
huge potential of buyers still waiting will be given full play
this year.
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