CRI听力: China Expected to Become World's No. 1 Auto Market in 2009

China has reported a notable rebound in its automobile market, after huge government subsidies. Chinese industry insiders expect the country will beat the US to become the world's largest auto market this year. Tu Yun reports.

REPORTER:

Yang Jie is Marketing Manager of SGMW, a jointly-owned automaker in Shanghai.

While his colleagues with the parent company General Motors in the United States are frowning over the gloomy American market, Yang Jie is happy that his target market is China.

"In the first quarter, our sales exceeded 240 thousand units, an increase of more than 32 percent over the same period last year. The government's stimulus policies have helped a lot. The whole market has been heated. We're really thrilled."

China's monthly vehicle sales surpassed those in the US for the first time in January.

The momentum has been continuing over the past five months after the government offered subsidies to drivers in rural areas and cut retail taxes as part of a massive 580-plus-billion-dollar economic stimulus plan.

According to the latest figures from the China Association of Automobile Manufacturers, passenger-vehicle sales jumped nearly 47 percent in May from a year earlier, the most since February 2006.

"The continuous auto sales growth in April and May was the result of a rise in consumer confidence."

Lang Xuehong is a researcher with the Society of Automotive Engineers of China.

"On one hand, the global economy has shown no signs of deterioration. On the other hand, the Chinese economy has shown signs of recovery in such areas as stock market and some major industries. After about three months of adjustment, automakers have increased their sales projections for the entire year. So China's total auto sales this year will definitely exceed our earlier expectation."(www.hXen.com)

In January, the China Association of Automobile Manufacturers forecasted a 5 percent increase in auto sales for 2009 to about 9.8 million units. But when sales picked up in the first five months of this year, the association increased its 2009 auto sales expectations to 11 million units.

With American auto purchasing slows due to the recession, insiders expect China to overtake the US as the world's largest auto market this year.

Tu Yun, CRI news.