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China's Auto Output Ranks Third in the World

25-04-2007

On April 22, 2007, the Shanghai International Auto Show was officially opened. As one of the most important A-class auto shows in the world, the Shanghai Auto Show not only brings together the world's leading multinational car producers, but also several major domestic auto manufacturers, providing them with a platform to showcase their own brands, latest research and achievements. Once again, China's automobile industry has attracted the attention of the world.

Ability to independently innovate significantly enhanced. At present, China is the world's third largest automobile producer and second largest new car sales market.

Chinese-made autos enter international market

According to the Annual Report on China's Automobile Exports 2006, published by the China Association of Import and Export of Electromechanical Products early this year, China exported cars to a total of 186 countries and regions in 2006, 7 more than in 2005.

On April 16, the vice chairman of the State Development and Reform Commission Zhang Guobao said at the Sixth Congress of China Association of Automobile Industry that China's auto exports have expanded rapidly in recent years. In 2006 the import and export of automobiles and auto parts had a surplus of US$2.2 billion, successfully reversing the long-term auto trade deficit. This shows that Chinese-made autos have indeed entered the international market and that the Chinese auto industry has become an international industry.

Statistics from the General Administration of Customs show that total national auto merchandise export was valued at US$28.144 billion at the end of 2006, an increase of 42.76% over the same period of the previous year.

Chinese auto sector still faces challenges

According to statistics from the International Automobile Manufacturers Association, China's output of large and medium-sized passenger vehicles accounted for 33% of the world's output in 2005, the biggest percentage of any country. China has therefore become the world's largest manufacturer of passenger vehicles. In addition, China is currently the world's largest motorcycle producer and consumer. According to statistics from the China Automobile Industry Association, the national motorcycle output is approaching 20 million, accounting for over half the world's total output.

Despite the fact that China has become a large automobile manufacturer, experts believe that China's automobile industry is still in its early stage of development. It still needs to improve its capacity for independent innovation and the readjustment of auto the industrial structure needs to be accelerated. In addition, it is also confronted by serious external environment challenges such as energy, transport and environmental protection.



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