Automobile sales in China – additional information
China is home to the world’s largest market for automobile sales. In 2013, around 22 million vehicles had been sold in China, accounting for more than a quarter of global vehicle sales, a demand that is influenced heavily by the affluence of a society. As the world’s second-largest economy, China has seen remarkable GDP growth over the past years. This massive economic development has lead to the formation of a new middle class in China, a demographic group that has spurred vehicle demand. On a different account, demand for automobiles is partly driven by concerns that more cities might impose new-vehicle quotas, following the example of Beijing and Shanghai. Therefore, a lot of consumers have brought forward their purchase intents.
China’s automobile market is dominated by international car manufacturers. In 2013, the bestselling vehicles in China came from General Motors and Volkswagen. The luxury passenger vehicle market, which is expected to grow by 23 percent in 2014, is dominated by imported vehicles. Many car models manufactured under joint ventures also target middle and lower-middle class buyers. These put double pressure on local carmakers. As of August 2014, Chinese automakers only accounted for some 20 percent of sedan sales in China, according to the China Association of Automobile Manufacturers (CAAM).