Chinese motorists are buying more and bigger cars

Car sales in China increased steadily in the first half of 2007. According to R. L. Polk & Co., 4.7 million passenger vehicles will be sold by the end of 2007, a 26 percent increase compared to last year. Since 2004, the Chinese car market has grown an average 20 percent a year.

The winner of this increase is (surprise) Toyota: with 72.6 percent more sales year-over-year. Honda (40.3 percent) and Nissan (38.9) are in position #2 and #3, while local manufacturer Chery was #4, increasing sales 27.9 percent. The worst performers were Geely and Hyundai-Kia, who have decreased registrations. Although most of the sales occur in the Coastal regions, the highest increases happened in weaker regions.

Most of the cars sold in China are medium sized and their portion of the market also increased: 34.1 percent in 2004 to 47.5 percent in the second quarter of 2007. On the other hand, small and large vehicles sell less: 9.3 percent of cars sold in the same period were small (28.8 percent in 2004). Larger cars made up just 6.3 percent of the market ( down from 9.3 in 2004).

[Source: Polk]

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