China will lead the U.S. as the world’s biggest auto market for a “long time,” (if not forever.) This assessment doesn’t come from the Chinese propaganda machine. Nick Reilly, GM’s head of international operations, thinks China is too far ahead of the U.S. and demand will grow next year, Bloomberg reports.
Reilly sees vehicle demand in China increase to more than 13 million units next year from about 12.5 million in 2009. “I don’t see the U.S. being anywhere near that,” Reilly said.
China’s car sales have risen more than 35 percent for six straight months, including a 90 percent jump in August. GM doubled its September sales in China to 181,148 vehicles. GM sold 1.29 million units in the first nine months of this year, more than its tally for all of 2008.
Meanwhile, in response to public concerns about the rapidly growing Chinese auto output, China’s Ministry of Industry and Information Technology (MIIT) said that the country’s car industry is not overheating, Gasgoo reports.
In view of China’s a large population, China’s total auto output is really not very high, said Zhang Xiangmu, director of MIIT’s equipment manufacturing industries division. “In terms of total vehicles produced and sold, China’s figure is not too high compared to the United States, Europe and Japan.”
He added that this year’s growth in sales can be attributed to the tax cuts for buying low-emission vehicles. The government’s stimulus measures to promote auto sales in rural areas also play an important role.
The tax cuts are scheduled to expire by end of December, but are highly expected to be extended to next year. The MIIT statement is an indicator in that direction.
GM could do worse than to marry itself to China as a survival strategy.
Meanwhile, Chinese energy officials say they’re worried about where all the energy/oil will come from.
Someone in The Party will synchronise the stories shortly. No one in the ‘leadership’ likes to have to cough up the ‘bad’ news I guess.
China is going to run into water shortages, as is India, as well as the United States, before their durable goods consumption matures
It is only natural. After all, the US has a far larger market than the UK, doesn’t it? DUh, since the population is 5 times as many. Similarly, there are 5 times as many Chinese as US citizens, so, eventually, and obviously, the CHinese market will surpass and far exceed the US market, at least in number of vehicles sold, and later even in the $ value of these cars!
Lets thank President George W Bush for putting America in a war to GRAB OIL RICH LAND from the Iraqi’s and the Afghanis. At least when times get tough, we won’t have to worry about energy reserves.
We’ll only have to worry about producing enough bullets and bombs to kill those who threaten our empire.
GOD BLESS AMERICA.
…and Lockheed Martin
Yeh, those Afghani oil wells are worth their weight in opium
……And that’s nothing to be concerned about. China has the largest population of any single country on this planet. It only makes sense that it’s the largest car market, as well.
She looks like a lady on the street but a freak in the bed.
Is GM being the broken clock or is the future of China doomed? Because GM is usually so, very, wrong.
Flashpoint,
Afganistan doesnt have oil, and we get ours mainly from Saudi Arabia. I do agree we need to end our American Empire however you may critcize Bush all you want but I have not heard anything from the new administration about pulling out of Iraq