瑓灥敨慊汢汤-OutlookonAutoIndustryInChina.pptVIP

Outlook on Auto Industry In China Presented by Team 2: Huanhuan He Siyan Zhang Seung-sil Lim Overlook of Auto Industry in China Despite the current marked decline in the automotive industry worldwide, sales in China are climbing at an unprecedented rate. The number of vehicles sold in the first quarter of this year doubled, year on year, to reach more than 400,000, leading some analysts to predict that China will be the world’s third-largest car market by the end of the decade, after the US and Japan. Announcements of new manufacturing investment in the country seem to take place almost weekly. Overlook of Auto Industry in China: Some Numbers Annual car sales in China broke the one million mark for the first time last year, surging 56 percent to 1.126 million. Automotive imports almost doubled in the first eight months of the year from the same period of 2002 to reach a record $9.3 billion as the industry sped ahead to meet demand Car output over the first eight months rose 89.7 percent year-on-year to 1.25 million cars -- surpassing the 1.06 million in all of 2002 Why this would happen? China has pledged to slash tariffs on auto imports to 25 percent by July 2006 from between 40 and 50 percent now and abolish all quotas by January 2005, in line with commitments made upon joining the World Trade Organization in late 2001. China has given boost to the development of Auto industry as one of the two pillar industries---the other being housing---in a bid to stimulate people’s consumption, spur the market and enlarge domestic demands. Why this would happen? Chinese government is planning to remove some of the regulatory and financial hurdles to encourage private car ownership. During the period of Ninth-Five-Year plan the auto sales volume in China has increased by 6.33% annually, from 1.46 million units in 1995 to 1.83 million units in 1999. The volume of private cars has grown by 28.4% annually, from 2.50 million in 1995 to 5.34 million in 1999. Why this would