|
Despite slack auto market in the latter half of
2004, China is expected to churn
out
more than 6 million cars in 2005, 20 percent more than last
year, replacing Germany as the 3rd largest manufacturer of motor vehicles,
Zhang Xiaoyu, vice-president of the China Federation of Machinery Industry
(CFMI), said in Beijing Saturday.
China's auto market expansion was slowed down last year due to
speculation that auto prices will be further reduced, Zhang said. "The
market potentials have been delayed, which does not mean the lack of
market demand."
In 2004, domestic manufacturers turned out 5.0705 million motor
vehicles, and sold 5.711 million entire car units, representing increases
of 14.11 percent and 15.50 percent respectively compared with 2003.
As prices are down to the lowest possible level this year, auto sales
will finally pick up its momentum, Zhang said, predicting that the
increase could be up to 20 percent.
Wang Qing, a researcher with the Market Economic Research Institute of
the State Council Development & Research Center, holds a similar view.
"Price fluctuation of automobiles this year will
be less volatile , because profit margins are
reaching bottom low and overstocking
pressure
greatly eased," he said.
Industry insiders also predicted that the growth market for
domestically manufactured motor vehicles may just be outside China.
CFMI vice-president Zhang Xiaoyu said that Chinese cars with a price
tag at 5,000 US dollars are highly competitive in the world, especially in
southeastern Asian countries, and the US$10,000 cars may also have a
larger slice of the world market share.
According to CFMI figures, China exported a total of 90,000 entire cars
last year, 140 percent more than in 2003.
(China Daily) | 
Updated: 2005-02-06 10:40
