Chongqing Changan Automobile Co, a Chinese major says that their auto market is likely to record slow growth next year too. The largest auto market is expected to grow at a rate of 3 to 5% in 2012. Currently, car sales in the Chinese auto market are most definitely lower for Q4 of 2011 when compared to the same period last year.
At present an auto venture between Chongqing Changan's state-owned parent and French PSA Peugeot Citroen is in the making. This year, the latter has also made headlines in the Indian auto market. China Changan Automobile Group and PSA will invest 8.4 billion yuan ($1.3 billion) in the 50-50 Changan PSA Automobiles Co Ltd venture for a R&D center in developing their own brand, Peugeot, and Changan brands initially.
President Zhang Baolin of Chongqing Changan Automobile Co had this to say. "The first quarter next year may be similar to the fourth quarter this year. China's car market next year is likely to remain in a slow growing trend overall." "Next year will be slightly higher. I expect sales will rise 3 to 5 percent." He put this year's car sales in China at 18.5 million units. Car sales in China saw just 1.4% growth in October 2011 effecting overall growth in the previous months. The Chinese government has done away with small car subsidies, and raised eligibility for fuel saving incentives. Annual car sales growth in China was 33% for 2010.