Chinese auto market likely to grow 5% in '09

GUANGZHOU, China (Kyodo) The Chinese auto market is likely to grow by 5 percent next year despite the global economic slump, a Honda official said Thursday.

"China's total car sales this year will likely be about 9.4 million, 6 percent shy of the 10 million estimate made (by the industry) earlier," said Honda Motor Co. Senior Managing Director Atsuyoshi Hyogo, who heads the company's China operations.

"I believe China's GDP growth next year will remain above 8 percent and its car market is looking to grow by 5 percent," Hyogo told a news conference in Guangzhou.

Noting that negative growth rates were recorded in July and August compared with the same months last year, he predicted next year will remain tough for the industry. However, he said China should still outperform the U.S. and European markets.

Hyogo is also president of Honda Motor (China) Investment Corp. and chairs Honda Automobile (China) Co., an auto production joint venture of Honda Motor Co., Honda Motor (China) Investment Co., Guangzhou Auto Group Co. and Dongfeng Motor Group Co.

The Guangzhou-based joint venture celebrated Thursday the export of the 100,000th Jazz compact to Europe.