China Will be World's No.3 Auto Producer

12/02/2005

China's auto production is expected to grow by 20 per in 2004 to 6 million vehicles, possible passing Germany as the world's No.3 producer, an industry association said last Saturday.

China is the world's fastest-growing auto market as rising incomes make it possible for millions to buy their vehicles. Forergn auto makers are investing billions of dollars in expanding production in China to meet booming demand.

China produced 5.1 million vehicles last year, and the figure is expected to grow by 20 percent this year, said Zhang Xiaoyu, vice president of the China Federation of Machinery Industry.

Germany produced 5.5 million vehicles in 2004, the No.3 producer behind the United States and Janpan.

Auto sales grew by 15 per last year, though that was below the growth rate of the previous year ad customers waited for lower prices as China allows in more imports.

Prices are believed to have hit a low point, so sales should rise again this year, Zhang said.

"This market potentials have been delayed, which does not mean the lack of market demand,"he was quoted as saying.