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Image header Agence Europe
Europe Daily Bulletin No. 10208
Contents Publication in full By article 20 / 23
ECONOMIC INTERPENETRATION / (eu) cars/china

China prepares for sharp increase in demand. - China is planning on creating around a dozen factories specialised in car manufacturing. This would substantially increase the country's production capacity, even though existing factories are far from being saturated. Production capacity is therefore expected to rise above 30 million vehicles by 2015, although sales are expected to be around 20-25 million in private cars by this time. This paradox can be explained by the sharp developments in the market and constantly increasing demand. Chinese forecasts for developing new factories are part of an approach for meeting increasing demand. China currently counts 40 cars for every 1,000 inhabitants. Despite increased demand, this figure is still significantly below current levels in Europe and the US, which stand at 500 and 700 vehicles per 1,000 inhabitants but which varies from country to country and region to region in the two continents. HSBC analysts have forecasted 95 cars per 1,000 inhabitants in China by 2015. (I.L./transl.fl)

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