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CAAC predicts that the scale of the automobile market in 2008 will continue to expand further
As 2007 drew to a close, evaluating the performance of the automotive market throughout 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 with the media, highlighting that over the past two years, the growth in production and sales has remained the core driver of the industry’s development. During the "Eleventh Five-Year Plan" period (2006–2010), the expansion of the auto market continued steadily. After surpassing 7 million units in 2006, production and sales are expected to exceed 8.5 million in 2007, with the market size projected to reach or approach 10 million vehicles by 2008.
According to data from the China Association of Automobile Manufacturers, in 2006, the country produced and sold 7.297 million and 7.216 million vehicles, respectively. By November 2007, production and sales had reached 8.059 million and 7.951 million units, marking a year-on-year increase of 22.25% and 23.19%. China now ranks third in global auto production, behind only the U.S. and Japan, which each produce over 10 million vehicles annually. Although there is no official count of total vehicles on the road, data from the Ministry of Public Security’s Traffic Management Bureau shows that as of September 2007, private motor vehicles totaled 118.13 million, up 7.22% from the previous year. Private cars accounted for 61.25% of this total, confirming that private consumption has become the driving force behind the auto market.
The association’s representative noted that although the market experienced a short-term slowdown between 2004 and 2005, the overall trajectory of the "Tenth Five-Year Plan" and "Eleventh Five-Year Plan" reflects sustained economic growth and evolving consumer behavior. As people transitioned from basic needs to more discretionary spending, demand for automobiles surged, becoming a key global economic trend. Since 2000, China’s auto output grew rapidly from 2 million to 7.2 million units in 2006, with an average annual growth rate of 24%. In 2007, the stable economic performance, with GDP growth expected to hit around 11.5%, and rising urban disposable income—projected to rise by 12.5%—fueled further growth. These factors helped push auto production and sales beyond another milestone in 2007.
In addition, Chinese automakers began exporting more vehicles abroad starting in 2006. By November 2007, national sales reached 7.95 million units, with exports accounting for 540,000 units, or 6.8% of total sales.
Looking ahead to 2008, the auto market is expected to maintain double-digit growth, with a focus on sustainable development. Macroeconomic indicators suggest that GDP growth could reach nearly 11% in 2008, and the government will continue to prioritize domestic demand and consumer-driven growth. With car ownership per capita still low—less than 50 per 1,000 people compared to a global average of 120 and the U.S. at 750—China's auto market holds significant untapped potential. Furthermore, as Chinese manufacturers improve their technology and cost-effectiveness, their vehicles are becoming more competitive in international markets.
The official emphasized that under the central government’s development strategy, quality and efficiency should take precedence over speed. This means focusing on energy-saving and emission-reduction initiatives, optimizing the economic structure, and fostering sustainable growth. For the auto industry, this translates into investing in core technologies, building strong brand identities, and refining industrial structures. While the market outlook is positive, competition is intensifying, especially as the market expands. Domestic and foreign automakers are set to face even fiercer competition, and local brands must accelerate innovation in vehicle development, manufacturing, marketing, and after-sales services to remain competitive.