China '09 auto sales expected at 10.2 mln units

China is expected to sell 10.2 million vehicles in 2009, up 8.7 percent year on year, according to the Chinese Association of Automobile Manufacturers (CAAM).

CAAM predicted that passenger vehicle sales would increase 10.2 percent year on year to 7.45 million units this year, with car sales up 7.9 percent and cross type sales up 23 percent.

Commercial vehicle sales would grow five percent to 2.75 million units.

Speaking at a CAAM member congress, CAAM executive vice Chairman Dong Yang said that the auto industry booster plan has started take effect to help stimulate auto sales since approved on January 14. Chinese auto market is showing signs of recovery.

According to Dong, also secretary general of CAAM, China's auto industry suffered growth slowdown in 2008 under dual pressures from state macro control and the global financial crisis. The yearly output and sales only grew 5.2 percent and 6.7 percent, respectively, marking the lowest growth in ten years.

Despite the slowdown in growth, China outshone other countries in auto market development last year, Dong added.

The launch of auto industry booster plan showed the government's commitment to development of auto industry. Along with implementation of the state supportive policies including cut in purchase tax on 1.6L-or-below vehicles and auto promotion sales in the countryside, sales of small-displacement cars and crossovers has increased, which is driving up sales on the whole auto market.

At the same time, Dong warned about further influences from the deepening global financial crisis, disclosing that the government would further launch a series of measures to help stimulate consumption, adjust structure and enhance development.

He said that China's auto market has big potentials, as the automobiles in registration much fewer than the world average.

He was confident that China's auto industry is expected to enter its heydays in 15 to 20 years.