China auto sales steadily rising


Vehicle sales in China may increase by 10 percent this year. General Motors, the second-largest automaker in China, is planning to launch 19 new vehicles, as the company looks to use profit from North America to offset costs overseas.

China had a strong 2013 with growth in automobile sales. Despite an economic decline, people continued to buy more cars. The consumption of steel also went up. Since steel is one of the most critical contributions for automobile manufacturing, demand for it should escalate simultaneously with automobile sales.


Volvo Cars cited "fantastic growth" in China as one of the main aspects behind their increase in annual sales. The country became Volvo’s primary market at the end of 2012 selling 427,840 cars, 1.4 percent more than in 2012.

"After six consecutive months of growing sales we can report a great full-year performance exceeding last year’s results," Volvo Cars Marketing, Sales and Customer Service executive Alain Visser said.

More Gasoline, Less Diesel

Motivated by increasing auto sales, China’s oil suppliers are speeding up gasoline output at the expense of diesel.

The shift from producing diesel used by power generators, trucks, and farm vehicles in favor of the gas used by passenger autos concurs with a national drive to improve the standards of fuel and to curb vehicle emissions.

Booming Market

The car market in China is growing as cars become more affordable. Car dealerships are being opened rapidly all over the country with domestic and imported cars available. China became the first country where domestic car sales surpassed 20 million units a years in 2013. Higher sales forecasts are predicted in 2014 as ownership gains spread to inland areas from coastal cities. Ford Motor is building its largest production facility in Chongqing, while Chrysler expands a factory in Changsha. Volkswagen is also building a new facility in the western region of Xinjiang and Yokohama.

Nippon Yusen K.K., the world’s largest carrier of vehicles by sea, is planning to add more logistics centers for trucks in China as part of a multibillion-yen expansion.

"We’re expanding our network in China," said Takaya Soga, a general manager of Nippon Yusen’s car logistics group. "Car sales are rapidly increasing in inland China.

How to Buy a Car in China

Before buying a car in China, foreigners are required to obtain a People’s Republic of China (PRC) driver’s license. When choosing a car dealership, it is best to go to one that has been recommended. There are many resources on how to buy a car. Most dealerships help with registration and few dealerships in major cities also have specialist services for expatriates. Bargaining is common.

It is possible to test drive a car in most China dealerships, although a PRC license is required to do so. The costs included in purchasing a new vehicle include:

  • The price of the car
  • Emissions test fee
  • Registration fee
  • Taxes: road, appraisal and user
  • Insurance
  • License Plate

The overall cost of buying a new car in China can increase drastically due to your license plate. Chinese government control the number of plates issued in an attempt to reduce congestion and smog in major cities.

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