A U T O     B U Z Z

China Enjoys Brisk Auto Sales for 2002

China turned out 3.25 million motor vehicles in 2002, a net increase of about 900,000 units over the 2.3344 million in the previous year, and sold 3.248 million, up nearly 900,000 over the 2.3637 million in the previous year, according to statistics from the State Development Planning Commission.

Cars, heavy-duty trucks and large buses played a leading role in pulling up the growth of the automotive industry.

2002 witnessed an excellent performance of the automotive industry. The industry, for the first time, outstripped the electronics industry to become the most important powerhouse in promoting the growth of the whole industrial sector.

Spurred by brisk sales and production of motor vehicles, economic efficiency of the automotive industry rose at a fast rate.

Statistics from the Industrial Department of the State Development Planning Commission indicate that China's automotive industry generated 151.5 billion yuan (US$18.3 billion) in industrial added value in 2002, rising 28.7 per cent, 646.5 billion yuan in sale revenue, up 30.8 per cent, and 43.1 billion yuan in profits, up 60.94 per cent.

Both the output and sale of cars reached record highs, at 1.09 million and 126 million units, surging 55 per cent and 56 per cent, respectively. Compared with 2001, the car output growth in 2002 could be described as by leaps and bounds. The total output of cars was 703,500 units in 2001 and the sale was 721,500, but jumped to 400,000 units in 2002, a growth of more than 55 per cent year on year.

Based on international-used R-index and other statistics, China has entered a period of fast growing in the use of motor vehicles. Taking Beijing as an example, the city sold 260,000 motor vehicles in 2002. Of this, 120,000 were cars, of which more than 75 per cent went to individuals, according to Cui Shuqiang, director of the Beijing Municipal Statistics Bureau at a recent press conference. Consumption on 100,000-yuan articles led by car has escalated the consumption structure of Beijing residents. Auto sale played an indispensable part in pulling the economic growth.

China's automotive industry will maintain its pep of fast growth in 2003. Zhang Xingye, honorary president of the China Automotive Engineering Society, is quite upbeat about the automotive industry in 2003. He said that the output and sales of motor vehicles could top 4 million units in 2003.

Industry insiders said the continuous improvement of the environment for economic development and automotive use would give a strong support to the fast growth of the automotive industry this year.

Positive factors for the development of the automotive industry include:

• China will maintain an about 8 per cent growth in GDP.

• Domestic demand will maintain its strong momentum of growth and the per capita income will increase, which will help boost big-ticket consumption.

• The state policies will encourage auto purchases while stressing the development of the public transit system, and the development of modern logistics system will come one after another.

[ BUZZ MAIN ]