Automotive

Statistics show that China's total vehicle sales topped 859,500 units in January, 2008, rising 2.39 over the previous month, and 19.84 per cent year on year. More than ten new models were introduced on the market in January, and the country is expected to add 10 million motor vehicles this year. Passenger car penetration per thousand people in China was around 11 units in 2006. This was significantly lower than other countries. China is currently the world's largest new automobile growth market, and this growth is spurring demand for U.S. automotive parts, services, and aftercare products. China is presently capable of manufacturing a complete line of automobile products and large automotive enterprises.

Due to the country's worsening environmental problems, we expect a rapid growth in the smaller and fuel efficient vehicles in the next five years. Cities such as Beijing and Shanghai currently require the relatively stringent Euro III emission standards. Large potential markets exists in electric, hybrid, and alternative fuel vehicles, especially in LNG, ultracapacitor, and bio-fuel cars.