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China automotive industry zooming ahead

The Chinese automotive industry has witnessed a huge development as consumers have more purchasing power, and road infrastructure has improved.

The country’s low labour costs and supportive geographical location also make it one of the most attractive destinations for major market players. As per the estimation, carried out in a research report available from ReportLinker, the domestic production of completely built-up units in China will surge at a CAGR of around 19% during 2011-2014.

According to the report, China Automobile Sector Analysis, government initiatives have provided a significant boost to the Chinese auto industry, placing it in forefront on the global automotive arena.

The government has recently announced various incentives and subsidies to boost the new energy vehicle market and make China the world’s largest producer of electric cars. After the announcement, prominent global names like Toyota are planning to enter China’s promising green vehicle market.

With the rising disposable income levels, the sales of luxury cars have also been growing significantly in the country where BMW, Audi and Rolls Royce are prominent players in the segment. Also, the country has been posting a considerable growth in utility vehicle segment, particularly SUVs.

Overall, the report foresees immense opportunities for both domestic and international players in the Chinese automotive market.

Source: Metal – powder.net

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