China may be world's largest auto market by 2020

Shanghai, November 27 (Gasgoo.com) The Chinese auto market is likely to overtake Japan to become the world’s second largest auto market this year and pass the the United States to be the world’s largest by 2020, Shoju Nozaki, executive vice president of Toyota's China operation was quoted by 21st Century Business Herald as saying.

Executive vice president of Toyota's China operation Shoju Nozaki

Amid the global financial crisis, the North American market downturn has dragged down the sales of Toyota, which saw a 4.3% decline for the first nine months of the year in global markets.

However, in China, one of its fastest growing markets, Toyota sold 475,000 cars in the first 10 months of the year, up 23 percent from a year earlier, while sales in October were up 15 percent at 46,000 units, Shoju Nozaki said. By 2015 or 2020, China market will be close to American market or even surpass it, he added.

Shoju Nozaki noted that China is likely to replace Japan to become the second largest auto market in the world beyond America as well as the second largest market for Lexus. “China is a very important market for us and we will stick to delivering products here at the same time with other markets,” he said.

Regarding of the economic slowdown, he warned that the effect will be seen in the China market next year as a result of the spill-over of the global financial crisis.

Toyota has taken massive measures to remain competitive in China, including cutting the costs, improving business efficiency and reducing the sales target.