China auto sales in 2010 may rise 17% to 16M units

Shanghai, April 22 (Gasgoo.com) China's vehicle sales will likely grow 17% this year to 16 million units and annual demand in the world's largest auto market may eventually exceed 30 million, Bloomberg reported today, citing an official at the State Information Center.

Passenger-car sales in 2010 are expected to rise 21.5% to 10.5 million, Xu Changming, a research director at the government advisory body, gave the estimate today during a presentation to the Beijing auto show.

"It is conservatively estimated that the saturation point of total demand is at least 30 million, and total auto ownership in China maybe up to 450 million units," Xu said.

This year's first-quarter auto sales rose 72% from a year earlier to 4.61 million vehicles, with passenger vehicle sales in the first three months up 76% to 3.52 million. March vehicle sales hit a new monthly record of 1.74 million units.

China overtook the U.S. as the world's biggest auto market last year by selling 13.6 million vehicles, up 46%, after the government cut sales tax on small cars and offered subsidies to rural buyers of clean vehicles.