China Auto Market to Grow by 12%

18/02/2005

An automobile expert predicts that China's automobile market is to grow by 10 to 12 percent in 2005, with a market scale of more than 5.6 million units despite a profit drop last year.

Chief analyst with the China Automobile Consulting Corporation Jia Xinguang says the auto market is still set to see a production surplus and fierce competition this year due to increasing production capacity.

In 2004, nearly one third of automobile manufacturers have experienced losses and one third of auto dealers have left the business because of rising production costs and sustained price reductions.