12.7 Million Cars and Trucks Expected to Be Sold in China This Year
For the first time ever, a country other than the United States is leading the world in total car and truck purchases.
According to the Associated Press, China has officially overtaken the United States as the world's biggest market for cars and trucks.
A total of 12.7 million cars and trucks will be sold in China in 2009, easily outpacing the 10.3 million in total sales that the United States is expected to put up.
The fact that China has passed the United States in new car purchases isn't surprising - what is surprising is how fast they have done it.
Some analysts had China passing the United States nearly 20 years from now - to accomplish this feat in 2009 is quite the achievement.
China was able to pass the United States so quickly due to:
1) the depressed American market
2) tax cuts in China
3) new Chinese subsidies meant to encourage "sales of SUVs, pickups and minivans"
Now, there is a very good chance that the United States will quickly regain its standing as the top vehicle purchasing country in the world (the AP article notes this as well).
However, any time back on the top of the list will likely be very short-lived for the United States.
China, as you likely already know, is growing in leaps and bounds.
The sheer volume of people living in China means that an eventual permanent displacing of the United States at the top of the list is a given.
After all, according to a Goldman Sachs study that was released in 2007, China is expected to have a GDP of around $70 trillion dollars by the year 2050, which would be nearly double that of the United States.
A $70 trillion dollar GDP represents an awful lot of new car purchases..
Source: AP - Chinese car market overtakes that of United States
Filed under: General Knowledge