The Chinese car market grew rapidly in 2006 after witnessing a decline in the growth rate in the previous two years. Car production and sales both exceeded 7 million vehicles in 2006. Production reached 7.2797 million units, up 27.32 percent from the same period of 2005. A total of 7.216 million units were sold, an increase of 25.13 percent.

The Chinese auto market in 2006 featured the following:

There was a rapid increase in production and sales and the profits of auto corporations increased dramatically.

Passenger vehicles remained the driving force of the market with production and sales totaling 5.2333 million units and 5.176 million units respectively. Sedan sales made up nearly 40 percent of this figure at 3.8289 million units, and those with an engine size between 1 liter and 1.6 liters accounted for over fifty percent. Domestic brands became increasingly competitive in the market.

Demand for commercial vehicles grew steadily, with production and sales of trucks climbing 13.45 percent and 13.29 percent respectively. Sales of light-and medium-duty passenger cars began to increase.

An increasing number of new models over 110 were launched on the market and prices were lower overall.

Export of auto goods continued to grow and was valued at US$25.516 billion in the first 11 months, up 43 percent.

Key auto corporations maintained steady growth. The top ten auto enterprises sold a combined total of 6.052 million vehicles, accounting for 83.87 percent of cars sold in 2006.

By People's Daily Online