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China's Auto Demand to Reach 20m in 2020: Report

China's demand for automobiles in 2020 is expected to reach 20.74 million units, including 20.43 million sedans, and the total number of cars in China by then will top 156 million, China Automobile News reported recently.

 

The paper quoted the Development Research Center (DRC) of the State Council, China's cabinet, as saying that the forecast was given on the basis of an eight percent GDP growth rate.

 

China will keep a sustainable, steady and rapid growth of sedan demand within the next 20 years or even longer, and household cars will become the most important pulling force for China's sedan sector and the mainstay of China's auto industry, the DRC predicted.

 

Meanwhile, the growing disposable income for Chinese will serve as a driving force to boost China's sedan demands, the DRC said.

 

Statistics show that in the past year, China produced 4.44 million autos and sold 4.39 million, a net increase of over 1.1 million for both, or a yearly rise of 35.2 percent and 34.21 percent respectively.

 

In 2003, sedan production registered a record two million units, a net increase of more than 910,000 units, or up 83.25 percent year-on-year. Meanwhile, sedan sales reached 1.97 million, up 75.28 percent.

(Xinhua News Agency January 23, 2004)

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