China's car imports likely to grow 20% in 2010

China's volume of imported autos is likely to grow 20% to 420,000 units in 2010, the Shanghai Daily reported, citing an industry insider as saying.

In 2009, sales of imported autos in China grew at a slower pace of 31% from a year earlier to 353,000 units, and imports at customs rose only 2.8% to 419,000 units last year. The small increase was due mainly to the global financial crisis and the consumption tax on imported cars with engine displacements larger than 3.0 liters, the English-language newspaper said.

Auto imports began to rebound in the second half of last year, thanks to a recovering Chinese economy and increasing demand in the country's second- and third-tier cities, said Ding Hongxiang, chairman of China Automobile Trading Co.

Sales in the second- and third-tier cities accounted for 53% of the total, the chairman said.

Imported cars are still attractive to buyers for individual features even though car makers added local production, Ding said.

Demand in big cities is expected to recover, and car makers will focus more on cars with medium-sized engines this year, he added.