It is estimated that China totally needs 5.8 million automobiles this year, a rise of 12 percent year-on-year, including 2.75 million sedan cars, a growth of 17 percent, said Xu Changming, director of the economy consultation office under the State Information Center.

The auto industry will continue to decline in the first half of this year, but with a slower speed, then a gradual rebound can be expected in the latter half, according to a report by the Research Department of Industrial Economy, Development Research Center of the State Council. The report predicted a growth speed between 15 and 20 percent this year, with total production and sale nearing 6 million vehicles.

The price cuts continued into this year will help boost consumption, Xu analyzed, as a survey by the Center indicated that 63.8 percent respondents believed price cut was the biggest incentive for them to buy a car. "Price cutting is still the most competitive promotion way", Xu said, believing the huge potential of buyers still waiting will be given full play this year.

By People's Daily Online