China, the world’s largest automobile market, is expected to have more than 300 million registered automobiles plying its highway by the end of the year. That would mean a quarter of its population has a driving license and owns a car.
The country which became the global manufacturing center for many automotive companies has grown leaps and bound over the decades to become the epicenter of the automobile supply chain. The encouragement spawned a vibrant domestic industry, now China exports its own brand of vehicles to other parts of the world. Even in Malaysia, Geely Group which now owns Volvo and Lotus has a majority stake in national car Proton.
This is how far the industry has grown, China Association of Automobile Manufacturers reports as of September, China already had 297 million registered automobiles, the agency added that its automobile market will continue to see stable growth in the future, with an expected 4 percent average annual growth for the five years to 2025.
As the world looks towards energy-efficient vehicles, China is not keen to be left out, in fact, the country is already a major manufacturer of EV batteries and will look at expanding the know-how to grow its EV status in the global network.
Further internal reports show that from January to October, the cumulative production and sales volumes of new energy vehicles increased by about 1.8 times year on year, currently, new energy vehicles accounted for 11 per cent of the gross car sales.
China is well aware of the development in this space and is not willing to be left behind, the country will continue to woo vehicle manufacturers with exemptions and tax benefits in order to gain from technology transfers. Investors will be drawn to the large vehicle market the country holds, a market that can’t be ignored by any standards, trade restrictions, or otherwise.
