Subscribe free to our newsletters via your
. 24/7 Space News .

China car market to grow 8% annually: McKinsey
by Staff Writers
Shanghai (AFP) Nov 21, 2012

Growth in China's auto market, the world's largest, is forecast to slow to an average eight percent annually from now until 2020 as consumers' tastes change, consultancy McKinsey said Wednesday.

The country's auto market grew an average of 24 percent a year between 2005 and 2011, the global management consulting firm said in a newly issued report.

Despite the slowdown -- from a 24 percent average between 2005 and 2011 -- China will remain the world's top market with sales of 22 million passenger cars in 2020, due to steady economic growth, rising incomes and road building, it said.

"Chinese consumers are growing more sophisticated about cars and their tastes are evolving," the report said.

"The Chinese car market is becoming more like that of North America, Europe and Japan and perhaps even more complex, given the many regional and segment differences."

Figures from a Chinese industry group show China's passenger car sales rose 6.9 percent annually in the January-October period to 12.57 million vehicles.

Growth so far this year shows improvement from the 5.2 percent for all of 2011, but is far below the 33 percent recorded in 2010, the China Association of Automobile Manufacturers said.

"Automakers must also factor in the uncertainties that may slow or disrupt market growth," McKinsey warned.

"The volatility, combined with chronic overcapacity, adds greatly to the challenges of doing business in the Chinese market."

Uncertainty over the global economy and policy moves by the Chinese government could have a negative impact, the consultancy also said.

Some Chinese cities have already slapped limits on car numbers due to concerns over traffic congestion and air pollution.

McKinsey said the business environment could also face "disruption" due to industry consolidation, while emerging alternatives to car ownership, such as better public transport, could also present a challenge.

Still, consumers were expected to buy bigger and more expensive vehicles, with sales of sport utility vehicles (SUVs) forecast to rise 13 percent annually from 2011 to 2020, it said.


Related Links
Car Technology at

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Fiat touts Italian style in China car challenge
Shanghai (AFP) Nov 21, 2012
Italian car maker Fiat is returning to China five years after a failed joint venture, but now faces entrenched competition and slowing growth in the world's biggest auto market. Fiat, the world's seventh largest car maker after taking a majority stake in Chrysler when the troubled US firm emerged from bankruptcy in 2009, has been conspicuous by its absence from the critical Chinese market. ... read more

China's Chang'e-3 to land on moon next year

Moon crater yields impact clues

Study: Moon basin formed by giant impact

NASA's LADEE Spacecraft Gets Final Science Instrument Installed

Martian And Terran History Finding a common denominator

Meteorites reveal warm water existed on Mars

NASA Rover Providing New Weather and Radiation Data About Mars

CU LASP package ready for MAVEN integration bound for Mars

NASA Selects Information Technology Flight Operations Support Contract

SciTechTalk: All work and no play?

Get some bed rest - all 21 days of it

Latest China military hardware displayed at airshow

Mr Xi in Space

China plans manned space launch in 2013: state media

China to launch manned spacecraft

Tiangong 1 Parked And Waiting As Shenzhou 10 Mission Prep Continues

Three ISS crew return to Earth in Russian capsule

Station Crew Off Duty After Undocking

Space station command changes

Russia restores space contact after cable rupture

France, Germany seek Ariane compromise at ESA space meet

ILS Launches the EchoStar XVI Satellite

Arianespace's fourth Spaceport mission with Soyuz ready for fueling

Ariane 5's sixth launch of 2012

Rare image of Super-Jupiter sheds light on planet formation

Astronomers Directly Image Massive Star's 'Super-Jupiter'

NASA's Kepler Wraps Prime Mission, Begins Extension

Lowell astronomer, collaborators point the way for exoplanet search

Smartphones crushing point-and-shoot camera market

Britain's oldest computer gets a 'reboot'

Global mobile data traffic doubled in year: Ericsson

China sets special funds to boost rare earth sector

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement