[GTO]

Thanks to the burst of the housing bubble & the credit crunch, American is no longer the largest car market in the world. A position it held for like almost forever.

The new big daddy? Yup, CHINA! Not only is China the world's largest car manufacturer, but is now also the world's biggest car market! This is a position they have held since January 2009!

The group said sales of cars, minivans and multipurpose vehicles rose to a record 772,400. Including trucks and buses, vehicle sales were up 5 percent, to 1.11 million units.

sales of small cars and small minibuses had surged because of a tax cut on vehicles with engines of less than 1.6 liters and because of a $730 subsidy introduced last month for car buyers in rural areas.

VW sells more cars in China than it does in Germany! At the other end of the spectrum, China is amongst the world's largest markets for luxo brands such as Rolls Royce, Bentley & Ferrari.

Expect local authorities to put restricting policies in place against large int'l players (VW, GM etc.) and support home grown brands / manufacturers. In addition, the Chinese govt. is putting everything behind electric cars. You bet they will make 'em cheap (cost is the single largest prohibiting factor to electric cars).

NYTimes

[Parm]

Chinese have a very strong R&D (Research & Duplicate) and that sure helps them in becoming the Largest car manufacturer!

here are some fine examples of R&D!

[avishar]

There is some ambiguity as to whether these figures are cars sold to the chinese public or cars manufactured including exports.Can anybody confirm?

[vasudeva]

China's 3/2009 figs. of 1.11 million vehicles sold incl. 0.77 million cars or 8.5-8.9 million per annum. See this:

IHS Global Insight // Same-Day Analysis

By comparison, US sales of 0.86 million in 3/2009 or 10.3 million annualised. See this:

IHS Global Insight // Same-Day Analysis

It seems that US sales will rise to around 13 million by 2012, but remain at 9-10
million in 2009-10. US auto experts predict recovery back to 16 million by 2015. See this, especially page 3-4.

Can Detroit Be Retooled — Before It's Too Late? - TIME

One month may not make a year, but it is highly likely that within a few years at most, China will become the no.1 car market on a permanent, sustained basis.

The 250-years of Western dominance in almost all economic aspects is slowly coming to an end. Read Angus Maddison for world GDP between 1-2000 AD. In mid-18th century, I think China and India accounted for one-third of world GDP (I think China 23%, and India 10-11%).

[vasudeva]

Some interesting facts (ref: Angus Maddison):
1. Western Europe per capita GDP overtook China in mid-15th cent.
2. US per capita GDP lagged India and China in 1700, but overtook both by early-1800s.

3. Until the 19th cent, China was a much bigger and more powerful state than any in Europe or Asia. Thereafter Europe slowly forged ahead in terms of per capita income, but Chinese population grew faster. Chinese GDP in 1820 was nearly 30 per cent higher than that of Western Europe and its Western Offshoots combined. Between the 1840s and 1940s, China’s economy collapsed. Per capita GDP in 1950 was less than threequarters of the 1820 level. In 1950, China’s GDP was less than a twelfth of that in Western Europe and the Western Offshoots.

5. In total GDP terms, in 1820, China accounted for 33% of world GDP, and India 16%. By comparison, Western Europe accounted for 24% and US for 2% only. Then history changed. By 1950, China 5%, India 4%, Western Europe 26%, US 27%, and Japan 7%.

6. Within 50 years, things had changed back. By 1998, China 12%, India 5%, West Europe 21%, US 21%, Japan 8%. Recent figs. From IMF are expected tomorrow, which will show an acceleration of the above trend.

Of course, India and China will take decades to catch up on per capita GDP, but in absolute terms, the time will be shorter. Repeated studies of car ownership indicate an exponential jump in ownership once per capita income jumps beyond a certain level (I think US$1,000 or US$5000 in 2000 terms). China is already past it, and India is expected by 2012-15.

[bhp1]

This is good news for the Asian subcontinent, the biggest citadels of the West shines in Asia now!
Going by this, Bangkok/Shanghai motor show could be the biggest event soon!

[vasudeva]

Also see this for 1900-2030 (figs compiled in 2006-07)

[nickatnite]

I think it's time the US did a 'USSR' with China. It's time they were brought to size. GM does sell a lot of cars in China though!.Well, it's ok.

[Nitin]

Nice comparison there, Parm ( with the research & duplicate ). Good one!
If we see a Chinese 'Nano' out, that could launch them into a whole new level and out of reach by any other market. The US did feel the pinch when the TATA Nano was revealed,and this lead by China could all the more push for the economic bailouts for the who's who in the US auto industry.

[vasudeva]

In April 2008, a journal `Economic Policy’ published an article `Mass car ownership in the emerging market giants’

Some key findings are in pdf below:

[suren181]

Guys, we need to accept the fact that they are a hard working nation. All spoofs would be laid to rest, if and when you make a visit to their country.

China has seen a sea change. I have been doing business with that country for quite some time now and have seen a sea of change sweep over the whole country as such.

My point here is if you have experienced the country and their people go ahead and induldge in mud-slinging if not experience the experience before you go by hearsay.

They have worked hard, voted well and their votes are working.

Wanted to say, PERIOD, but refraining from doing so.

[pranava999]

@suren agree with you there...even though its a corrupt one party govt. in power, when it comes to infrastructure they are leaps ahead of us and they pride themselves in achieving unheard of feats in engineering and infrastructure. They are well on their way to becoming USAs biggest economic threat. Not too far when the Chinese currency will be traded in the same breath as the Euro or the Dollar

[Parm]

here is a classic example of R&D (Research & Duplicate) of HARD WORKING chinese nation assualting indian brands!

ladies and gentlemen, let me present Chinese Gulsar! hmmm i think i have heard a similar name somewhere produced by not so hard working indians!

[srishiva]

I hope China will R&D Nano with a Chino and sell it for 50K !

[avishar]

Yeah and the entire things falls apart when u turn the ignition??
No thank you..i will stick with Tata.