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CAAC predicts that the scale of the automobile market in 2008 will continue to expand further
As the end of 2007 approached, assessing the performance of the automotive market for the year became a widely discussed topic both inside and outside the industry. Recently, an official from the China Association of Automobile Manufacturers shared insights during an interview with the media. He highlighted that, based on the development trends over the past two years, the growth in production and sales volume remained the core driver of the industry's progress during the "Eleventh Five-Year Plan" period (2006–2010). In 2006, national auto production and sales surpassed 7 million units, rising to over 8.5 million in 2007. By 2008, the market was expected to expand further, reaching or nearing 10 million vehicles.
According to official data from the China Association of Automobile Manufacturers, in 2006, the country produced 7.297 million vehicles and sold 7.216 million. From January to November 2007, production reached 8.0594 million units, while sales hit 7.9512 million, reflecting year-on-year growth of 22.25% and 23.19%, respectively. China now ranks third in global automobile production, behind the U.S. and Japan, which both exceed 10 million units annually. Although no official organization has yet released exact vehicle numbers, the Ministry of Public Security’s data showed that by the end of September 2007, there were 118.13 million private motor vehicles in China, up 7.22% from 2006. Private cars accounted for 61.25% of this total, marking private consumption as the dominant force in the market.
The association’s representative noted that although the auto market experienced a short-term slowdown between 2004 and 2005, the long-term development trajectory of the "Tenth Five-Year Plan" and "Eleventh Five-Year Plan" was driven by sustained economic growth and evolving consumer behavior. As people shifted from basic needs like food and clothing to more discretionary spending, demand for automobiles surged globally. Since 2000, China’s auto production increased rapidly from 2 million to 7.2 million units in 2006, with an average annual growth rate of 24%. In 2007, stable economic performance led to an expected GDP growth of around 11.5%, with urban residents’ disposable income rising by approximately 12.5%. These factors supported strong growth in the auto sector, with production and sales surpassing the 8 million mark.
Moreover, Chinese automakers began exporting larger volumes overseas starting in 2006, helping boost domestic production. By November 2007, national sales reached 7.95 million units, with exports accounting for 540,000 units—6.8% of total sales.
Looking ahead to 2008, the outlook remained positive, with continued double-digit growth expected. The government aimed to maintain healthy industry development by focusing on domestic demand and boosting consumption. With a projected GDP growth of nearly 11%, the role of automobiles in meeting rising consumer expectations became increasingly significant. At just under 50 cars per 1,000 people, China still had much room to grow compared to the global average of 120 and the U.S. figure of 750. This indicated strong potential for future expansion.
Additionally, as Chinese car manufacturing technology improved, its cost-effectiveness advantage became more apparent, making domestic brands more appealing to international markets. The association emphasized the need to prioritize quality and efficiency over speed, promoting energy-saving and emission-reduction efforts to reshape the industry’s development model and optimize the economic structure.
In 2008, the auto industry should focus on enhancing core technologies, building strong brand identities, and refining industrial structures. Officials urged Chinese automakers to remain vigilant, as competition would intensify with market expansion. Domestic and foreign players alike would face greater challenges, and local brands must accelerate their development in vehicle design, manufacturing, marketing, and after-sales services to stay competitive.