According to a report from Bloomberg, the demand for autos in China is so intense, that factories that are cranking them out almost 24-hours per day cannot meet demand.
On customer reports that her order from Nissan is back-logged by three months. She said that it didn't use to take that long, but now you have to pre-order and wait.
Sales of autos in China have rocketed to 13.6 million last year, a 46% increase over the year before, according to data from the China Association of Automobile Manufacturers. Even companies like Ford, Honda, as well as Nissan, are running their factories at full-capacity, offering overtime, and working over the weekend, but still can't meet the demand.
China Association of Automobile Manufacturers also said that about 99.7% of cars made in China through November 2009 have been sold. The companied benefit from government subsidies and an 8.9 economic growth in China.
Growth in rural areas in a big contributor to the overall growth rate in China, and certainly to their auto industry. With the increased economy, spending power in these households has increased.
Nissan plans on spending 5 billion yuan to expand its production capabilities to 600,000 autos annually, up from 430,000 currently being produced every year. That amounts to about 1640 cars per day for the year, and an increase in production of 460 cars per day.
Changan Ford Mazda Automobile Co.also plans to expand its production to 600,000 in 2012, when it will invest $490 million to build a factory in Chongqing.
Source: StreetInsider.com (via oneclick.indiatimes.com)
