China
saw the slowest growth in the country's auto market in over a decade last year, according to the Associated Press. Sales rose by just 2.5 percent in 2011, thanks in part to more expensive vehicles and tighter buying controls. All told, consumers brought home 18.5 million vehicles last year, compared to 18 million in 2010. Chinese buyers endured the expiration of various tax breaks and buying subsidies, changes that saw the bottom line on most vehicles increase substantially. In addition, the Chinese government installed new restrictions on car buying in Beijing, further crimping sales growth. Sales exploded by 32 percent in 2010 after China slashed sales taxes and offered hefty subsidies in an effort to push buyers toward the showroom.

By contrast, the U.S. enjoyed fairly expansive growth last year. Vehicle sales in the U.S. increased by 10 percent to 12.8 million units.

Analysts expect the Chinese auto market to continue growing in the coming years, but the pace will likely be more restrained than in the past. The country's housing market is beginning to cool down, which typically yields slower expansion in the vehicle market as well.


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    • 1 Second Ago
  • 12 Comments
      Richard
      • 2 Years Ago
      Renaurd makes a good point but also - will this be the year that everyone wakes up and realizes that China is NOT taking over the world? Their whole business model as a country is based on (1) 99% of the people working for literally NO money (2) comodditized products that any of a dozen countries in asia or africa could rise up to challenge them in and (3) massive, massive fraud on a systemic level in their banking and finance businesses that will make the US housing bubble look like an SNL skit in comparison. don't forget a totalitarian govt that is merely in remission and silly cultural beliefs (why are they short 20 million women?). Biggest hype story of all time China is.
        clquake
        • 2 Years Ago
        @Richard
        You just keep thinking that way. China will pass you by and when you wake up, you'll find out it's too late.
          IBx27
          • 2 Years Ago
          @clquake
          We're already awake, it's the moronic CEO's here who send all our jobs and manufacturing to china for a quick buck today, huge loss tomorrow, who have yet to see the hole they've dug for everyone.
        Famsert
        • 2 Years Ago
        @Richard
        Uh Chinese income has been rising far quicker than most of the world in the past decade. This has not changed this year nor will it the next. Their model is the same as Japan, Korea, Taiwan, Hong Kong, etc... move up the value chain. Notice that Hong Kong used to produce dollar store crap and today they're one of the richest countries in the world. Why? Because they've moved on from that- their incomes have risen yet the jobs have not left because they moved up the value chain. The same with China. That's why they're not producing clothes as much as they used to, rather they've moved on to consume electronics, and are currently moving into industrial equipment and even building companies to compete with Western ones (unfortunately).
      • 2 Years Ago
      [blocked]
      Jason Alan Sipes
      • 2 Years Ago
      Go look up China's Industry Bubble, they are destroying neighborhoods where 10 people live in a area half the size of a normal house(share a bathroom and water source). To build apartment buildings that the people can't afford to live in, I think one example was $300,000 for a apartment in the building and it must be paid in full within 3 years. Out of all the apartment buildings they've made only 25% are occupied and there are literally brand new ghost towns. It's about keeping their GDP up, not making it better for their people.
        rmkensington
        • 2 Years Ago
        @Jason Alan Sipes
        Not sure why your being downvoted, because your correct. The question is just how much the bubble bursting is going to affect them.
      IBx27
      • 2 Years Ago
      And that's on a sunny day with no clouds!
      Jason Allen
      • 2 Years Ago
      Yes there are big problems in China, some mentioned here alrwady, but the big thing to remember is that despite those problems there are hundreds of millions in the chinese middle-class. And there are a few extremely wealthy people. Those folks alone can sustain a large part of the chinese domestic economy. Same as in the US. Sometimes it seems like there has been no recession lately, if you look at the right segment of society. China isn't going away. They will be a big part of Chimerica for the forseeable future. We two are one; chimerica is its name. So don't be afraid, we are a part if it, we are not getting taken over.
      Worx2749
      • 2 Years Ago
      China's cities remind me of NYC in the 60's....can barely see the buildings through all the pollution.
      Phlegminglib
      • 2 Years Ago
      A BMW 535iL (extended version of the 535 assembled in China and only offered in China) costs more than 700K RMB, or more than $110 thousand dollars. How's that for expensive?