JDPower: China's auto market will slow down next year

Geester Automotive JDPower, an authoritative market consulting company in the United States, recently stated that in 2010, the annual sales volume of the Chinese automobile market will reach 18 million, an increase of 30%. In addition, JDPower believes that in 2011 and beyond, the growth of the Chinese auto market will slow to 10%.

JDPower pointed out that the Chinese government reduced the purchase tax of 10%-15% of the models under 1.6L in January 2009, and the reduction in purchase tax triggered a surge in car sales. In early 2010, the Chinese government reduced the tax deductions for auto purchase tax. At present, the Chinese government may cancel the car purchase stimulus plan by the end of 2010, because the rapid increase in the number of cars will increase the consumption of gasoline, and may cause great damage to the current environment.

It is precisely for this reason that JDPower judged that the Chinese government will not allow the growth of automobile sales in 2011 to maintain the level from 2009 to 2010.

J. D. John Zeng, Director of Power Asia, predicts that China's auto sales will grow by 10.5% in 2011. This forecast is basically in line with the forecast of Kevin Wale, president of General Motors of China, who disclosed to Bloomberg that the sales growth of China's meteorology will slow down to 10-15% in 2011 due to the end of the auto sales stimulus plan.

It is reported that in October 2010, China’s auto sales exceeded 1.5 million, while sales from January to October 2010 exceeded the full-year level in 2009, and sales are expected to increase by 30% year-on-year, and sales in 2009 will increase by 50%.