Many pronounced the end of China’s torrid growth of car sales after they slowed to just 4.57 percent in February. Xing Huang, chairman of state-owned auto parts maker China Auto Parts & Accessories Corp (CAPAC), thinks otherwise. He expects the Chinese auto market to grow at the same speed in 2011 as in the year before, says Reuters. That would be 32 percent.
CAPAC President Kangren Chen points at 150 million motorcycle owners in China who want to own cars. That actually is a good indicator. Once people have money, they change from 2 wheels to 4.
In the meantime, the car market in Beijing is in total disarray. As reported before, only 2,000 of the 20,000 license plates awarded in the lottery have been converted into car sales. The used car market has collapsed, because license plates are no transferable. A lot of people in Beijing expect the rules to change the soon the city can backpedal without a huge loss of face.