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Chinese Passenger Car Market Slips into Top Gear with Government Backing - New analysis from Frost & Sullivan, Chinese Passenger Car Market, reveals that the total sales volume of passenger cars has jumped from about 1.2 million in 2001 to over 5.17 million in 2006
Chinese Passenger Car Market Slips into Top Gear with Government Backing

 

PRZOOM - /newswire/ - Beijing, China, 2007/10/22 - New analysis from Frost & Sullivan, Chinese Passenger Car Market, reveals that the total sales volume of passenger cars has jumped from about 1.2 million in 2001 to over 5.17 million in 2006.

   
 
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Passenger cars are fast becoming a necessity in China, with the country's high gross domestic product (GDP) rates encouraging people to invest in the market. The Government has also taken active steps such as lowering the tariff on imported cars to propel the Chinese passenger car market.

New analysis from Frost & Sullivan (automotive.frost.com), Chinese Passenger Car Market, reveals that the total sales volume of passenger cars has jumped from about 1.2 million in 2001 to over 5.17 million in 2006. Moreover, China has overtaken Japan to be the second largest automotive consumer in the world in 2006.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of Chinese Passenger Car Market, then send an e-mail to Danielle White, Corporate Communications, at dwhite[.]frost.com with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

Reduced tariffs will enable foreign companies to slash the prices of their cars and compete with the products of domestic OEMs. Meanwhile, new rules on the qualification evaluation of car dealership will ensure the elimination of car dealers without authentic authorization, aiding fair competition in the market.

"Policies have also been drafted to improve the quality of car parts and components to guarantee the safety of passengers," says Frost & Sullivan Industry Manager Cecilia Yuan. "The move to promote the consumption of low-cylinder volume cars will not only improve their effect on the environment, but also raise the prices of luxury cars."

Further, the State Council's mandate to rationalize the structure of the automotive industry will curb irrational expansion of production. All these factors expect to go a long way in accelerating the passenger car market's development.

In 2006, China outstripped Japan as the second largest vehicle consumer in the world and it is likely to sustain this high growth in 2007. The sales of passenger cars and commercial vehicles expected to increase by 22 percent and 7.8 percent, respectively, to touch 6.30 million and 2.20 million. The Chinese automotive market anticipates rolling out 8.5 million units in 2007, 15 percent more than 2006.

"Sedans claimed the largest market share, followed by minibus, sport utility vehicle (SUV), and multi-purpose vehicle (MPV), with market penetration rates of 74 percent, 17.7 percent, 4.5 percent, and 3.6 percent, respectively," notes Yuan. "The Chinese Spring Festival in January also ensured that the sales of passenger cars rebounded in March and peaked in December."

Chinese Passenger Car Market is part of the Automotive & Transportation Growth Partnership Service, which includes research services in the following automotive markets: Vehicle and OE Technologies, Automotive Aftermarket, Telematics & Infotainment and Transportation & Logistics. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews are available to the press.

About Frost & Sullivan
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

 
 
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Chinese Passenger Car Market Slips into Top Gear with Government Backing

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Contact: Danielle White 
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IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Frost & Sullivan securities in any jurisdiction including any other companies listed or named in this release.

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