Everybody is worried about China flooding the world with cheap cars. Just the opposite is true. The world is flooding China with expensive cars. China has become one of the prime export markets for major carmakers the world over, especially in the higher segments. For next year, a unit of the Chinese government predicts imports to China to exceed the 1 million mark. Exports remain lacklustre.
From January to May 2010, car imports to China grew 184 percent from last year’s 110,000 units to 300,000 units. The volume of China’s exported autos in the same period was only 130,000-190,000 units, up 52 percent year on year, according to data released by China Automobile Trading Co., via Gasgoo.
The volume of imported autos for 2011 is likely to exceed one million units, Xu Changming, director of economic research for the State Information Center said.
European cars are especially hot in China, with first five months imports up 237.2 percent from last year’s 61,000 units to 205,000 units, thanks to a weaker Euro. From Japan, the country with the strong Yen, China only imported 107,000 vehicles in the first five months of this year, but still up 127.4% year on year. The volume of imported luxury cars during the first half was up 133.7 percent.