Want to know how rapidly China’s auto market is growing?
A new report from IHS Automotive forecasts annual auto sales in China will grow by 74% to more than 30.6 million vehicles a year.
Take a moment to think about the enormity of that projection.
Last year, approximately 76 million vehicles were sold around the world. By the end of this decade, China is expected to sell 2.5 million new vehicles every month.
I point this out for two reasons.
First, there are still people who think the center of the auto business is and will always be the U.S. Yes, while the U.S. is still the most lucrative auto market in the world and it will always be a primary player in the global auto industry, the axis of the industry is tilting toward China. That’s not meant as a criticism of Detroit or the Big 3. It’s simply the reality.
The second reason China’s booming auto industry is important is because the automakers and parts suppliers best positioned to win in China will also have a better shot at long-term success. Look at GM and VW . They are neck and neck in the race for #1 in China and they are laying out plans to strengthen their operations in China. GM has eight plants in China while VW is in the process of adding three more plants.Page 1 of 2 | Next Page