After years of booming sales, China's auto market might experience a slowdown in growth in 2011.
Auto sales growth in the Chinese market will reach 30 percent in 2010, but might slow to 10 percent in 2011, according to a report from the U.S.-based J.D. Power and Associates.
Chinese officials have recognized the troubles brought on by the rapid increase of automobiles on the street, including traffic congestion, pollution and unrestrained expansion of production capacities, according to Zhu Ming, an analyst at the U.S. research company.
The current stimulus policies of auto purchasing might be stopped in 2011, restricting people's willingness to buy.
In 2010, domestic automakers used about 88 percent of their manufacturing capability, while some joint ventures with foreign companies were running 24-hours a day, and seven days a week to meet demands.
Analysts warned that automakers will be challenged with managing a surplus in production next year if sales stagnate. |