China Quite Likely To Pass U.S. In '09 Auto Sales

Shanghai, February 9, 2009: (Gasgoo.com) A senior state official said China is quite possible to overtake the United States as the World No.1 car market for all of 2009, but he also warned against over-optimism, according to a newspaper report on Monday.

"Chinese auto sales are expected to grow 4% to 5% from 9.38 million units sold last year, more than the estimated 9 million unit sales in the U.S. this year," Xu Changming, director of the economic consultative center under the State Information Center, told National Business Daily.

"But this figure is not something we should feel proud of since the U.S. was just plunged into an economic recession," Xu warns. "Once the recession ends, America can retake the sales crown by selling 16 million-17 million vehicles annually."

"Therefore China still needs at least four to five years to eventually catch up with the U.S. in the auto sales total," Xu added.

China's January auto sales including sport utility vehicles totaled 647,594 units, down 0.2% from a year ago but up 0.5% from December, data from the China Passenger Car Association (CPCA) showed. In the U.S., meanwhile, auto sales in January tumbled 37% to 656,976 vehicles, hitting the 27 years low.

Xu said the auto industry support package unveiled by the Chinese government, including halving the purchase tax on cars with engine sizes below 1.6 liters, helped to fuel car buyers' enthusiasm for low-emission vehicles.

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