NewswireToday - /newswire/ -
Delhi, New Delhi, India, 2007/06/19 - Passenger cars industry, a booming sector in China, is set to witness healthy growth this year as well.
As per a recent report “Passenger Car Market: A Global Review (2006)", published by RNCOS, it has been found that boom in the demand for passenger cars in China has attracted more and more overseas players to venture their capital in this segment. Consequently, foreign carmakers have declared that they would invest US$15 Billion in this sector by the next year (2008). This will impel car registration in China, which is expected to grow at a CAGR value of 13.82% during 2007-2010 to reach 6712, 000 units.
Outstripping Japan, China became the second largest consumer of vehicles globally during the year 2006. Booming sales in consumer vehicles remained the key factor behind this remarkable growth. The country is expected to retain its position in this year (2007) as well. Sales of commercial vehicles and passenger cars are expected to increase 7.8% and 22%, respectively, and touch 2.20 million and 6.30 million, as per Frost & Sullivan research. Chinese vehicles market will likely roll out about 8.5 million unit vehicles this year, 15% up from last year.
High GDP has been playing a significant role in making private cars a fast emerging necessity among the Chinese population. Active participation of the govt. to help the market further flourish has become evident as it declared reduced tariff on imported cars. This move is expected to allow overseas players to cut down their cars’ prices and increase their competitiveness in domestic market. In the meantime, new regulations on the qualification-evaluation of car-dealership will surely help in eliminating the car-dealers that don’t have authentic authorization, thereby encouraging fair competition in the market.
Leading enterprises & integration remain the prominent themes of interest in the auto-parts industry. Through several years of expansion and growth, auto-parts industry in China is improving its position. There’s been a notable improvement in the manufacturing level of this industry.
Conversely, industry competition anxieties have resulted in increased demand for capital and integration. Existing parts-makers want to expand and become more competitive, whereas new comers in this market want to grow into bigger players.
As per the RNCOS report “Passenger Car Market: A Global Review (2006)”, “Apart from Chinese consumers’ higher incomes, slashing prices and easy availability of car financing deals remain the key influencers for the car purchases in the country. This offers immense growth opportunities for overseas players in this country.”
This research reports on “Passenger Car Market: A Global Review (2006)” attempts to answer various key questions, including: how attractive is the passenger car industry for investors, who are the key competitors in the global passenger car industry, and so on.
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RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.