China has driven past Japan to become the world's second-largest new car market.

[touchring]

Gas and oil stocks anyone? Any recommendations? :)


http://www.999today.com/motorandautos/news/story/4722.html

Chinese car market is second biggest
The Volkswagen Jetta was China's best-selling model in 2006

11th January 2007

China has driven past Japan to become the world's second-largest new car market, figures suggest.

Car sales surged 37 per cent in 2006, according to the China Association of Automobile Manufacturers (CAAM).

Sales of passenger cars jumped 30 per cent last year to 5.18 million units, the CAAM announced.

Total vehicle sales, which include trucks and buses, climbed 25 per cent to 7.22 million units in 2006.

China's best-selling model in 2006 was the Volkswagen Jetta, while the country's biggest-selling manufacturer was Shanghai General Motors.

According to market analysts, the Chinese car boom is being driven by the country's impressive economic boom.

Michael Dunne, of car research company JD Power and Associates, said: "There's money here and people spend that money on cars.

"The Chinese government has made no secret of its intention to develop a car culture and a car industry. All of the forces are working together."

Looking ahead, the CAAM expects total vehicle sales to grow 15 per cent to reach 8 million units by the end of 2007.

Japan's total vehicle sales fell slightly last year to around 5.7 million units, the Japan Automobile Manufacturers Association (JAMA) said.

The US is still the largest car market in the world. However, Dunne believes China could overtake the US to become the number one by 2015.

He added: "It could happen. China's annual income per person is just over $1,000, and they're buying 7 million vehicles.

"Imagine what happens when that goes to $2,000 or $3,000."

China's car producers manufactured a whopping 7.28 million vehicles last year, up by nearly 30 per cent on the previous twelve months.

China, which has population of about 1.3 billion, is the world's fourth-largest economy.

[Rubber Duck]

Japan has a huge disadvantage over the US as their cars are more durable and reliable so presumably need replacing less frequently. Despite all the adverse publicity I expect this will be the case with China very soon!

[touchring]

Japan has a huge disadvantage over the US as their cars are more durable and reliable so presumably need replacing less frequently. Despite all the adverse publicity I expect this will be the case with China very soon!


Actually, i think if not for the congested roads not built for cars cities like shanghai, i think the car population will be much higher today.

http://www.shanghaidaily.com/sp/article/2007/200707/20070716/article_323489.htm

THE largest quota of car license plates ever sold at a monthly auction in Shanghai saw prices slip slightly from last month's record high at a sale over the weekend, but winning bids were still the second highest in the auction's seven-year history.

Officials said the number of plates on sale was increased as a temporary measure to lower prices and should not be seen as a signal the city plans to sell an unlimited number of plates in the future.

The city put 7,500 plates up for sale at Saturday's auction, the largest number since the monthly plate sales began in 2000.

The increased quota saw the average winning bid drop 1,130 yuan (US$149) from July's record high of 46,581 yuan, while the lowest winning bid slipped 2,000 yuan from 45,200 a month earlier.

The increased quota attracted 10,327 bidders, the largest number of potential buyers to take part in a plate auction this year.

While the city sold 3,700 more car plates during the first half of this year than the same period in 2006, a buoyant car market is pushing up demand and prices. Prices have topped 40,000 yuan since January and generally rise about 1,000 to 2,000 yuan a month.

Next month's auction will be held on August 18.

[Rubber Duck]

Yeah, must be a real struggle for Rick's $100 per annum peasant to come up with $6,000 simply for a car registration plate!

[touchring]

Yeah, must be a real struggle for Rick's $100 per annum peasant to come up with $6,000 simply for a car registration plate!


They were once 90% peasants.

That's why i say official figures are entirely useless (if the China officials are smart, they will reduce all growth figures by half to gain leverage in trade talks) - one must deduce from consumption statistics like the number of new cars, the number of mobile phones produced, new broadband internet connections, the increase in the number of students studying in UK and UK, etc, these figures are growing by far more than 10% a year.

[Rubber Duck]

Yes, even one or two dozy economist seem to be waking up to the fact that their GDP stats are not giving them a meaningful picture. The impact will hit Western Economies like a stealth torpedo. Suddenly the uneven playing field will be tilted the other way!


They were once 90% peasants.

That's why i say official figures are entirely useless (if the China officials are smart, they will reduce all growth figures by half to gain leverage in trade talks) - one must deduce from consumption statistics like the number of new cars, the number of mobile phones produced, new broadband internet connections, the increase in the number of students studying in UK and UK, etc, these figures are growing by far more than 10% a year.

[Edwin]

They were once 90% peasants.

That's why i say official figures are entirely useless (if the China officials are smart, they will reduce all growth figures by half to gain leverage in trade talks) - one must deduce from consumption statistics like the number of new cars, the number of mobile phones produced, new broadband internet connections, the increase in the number of students studying in UK and UK, etc, these figures are growing by far more than 10% a year.

The official figures can easily be true IF you consider that the wealth probably isn't getting spread equally.

For example, an increase of 10% average income in a year could mean every person's income went up by 10%, or the top 10% of wage earners saw their incomes go up 100%. In other words, the gap between rich and poor is growing VERY rapidly. I'm guessing the latter is closer to the true scenario...

[touchring]

The official figures can easily be true IF you consider that the wealth probably isn't getting spread equally.

For example, an increase of 10% average income in a year could mean every person's income went up by 10%, or the top 10% of wage earners saw their incomes go up 100%. In other words, the gap between rich and poor is growing VERY rapidly. I'm guessing the latter is closer to the true scenario...


The gap between rich and poor is growing VERY rapid, but no more rapid than in the USA.

GINI coefficient index:
http://en.wikipedia.org/wiki/List_of_countries_by_income_equality

USA: 45 (2004)
China: 44 (2002)
Japan: 37.9 (2000)
South Korea: 35.8 (2000)
UK: 36.8 (1999)
Russia: 40 (2002)
India: 32.5 (2000)

The higher the coefficient, the greater the income inequality.

[Rubber Duck]

Is this economics or social history? These figures appear to be extemely dated!

[touchring]

Is this economics or social history? These figures appear to be extemely dated!


That's right, figures are useless, even general perception is inaccurate. Only a thorough on the ground study is reliable.

It is interesting to note that the income inequality is even greater in Hong Kong.

Hong Kong 53.3 (2006)

[jacksonm]

It is interesting to note that the income inequality is even greater in Hong Kong.


Ah, the city with the most Rolls Royce's per capita in the world.

.

[IDNCowboy]

japanese have more money

[touchring]

japanese have more money


I shan't deny that. :)

[Rubber Duck]

I shan't deny that. :)

That was a quick about face!

[touchring]

That was a quick about face!


No, it's the fact. No matter how bullish i am, there are problems that have to be fixed as Edwin mentioned, but which presents even more opportunities in the medium term. Buy on weakness. The long term prospects are good nonetheless.

The Chinese government has adopted the Singapore government model of sovereign wealth funds investment - http://bloomberg.com/apps/news?pid=20601109&sid=aSxMr2yxaBZM&refer=home

Mind you, Singapore has only 4 million people, so 1.3 billion people can do much better, and doesn't get bullied easily. ;)

[Rubber Duck]

Actually, I think the main reason their is such opposition to IDN from a hardcore of ASCII domainers is that I think some of them are worried that if their Fortune Cookies are in Hanzi instead of Chinglish, then they will lose one of their primary sources of registration inspiration.

[touchring]

Actually, I think the main reason their is such opposition to IDN from a hardcore of ASCII domainers is that I think some of them are worried that if their Fortune Cookies are in Hanzi instead of Chinglish, then they will lose one of their primary sources of registration inspiration.


Yup, i tried that, first time i tried that was in a Florida chinese restaurant. It was quite a novelty. :)