Chinese Car Market

20 Pages 5026 Words

counts that essentially cover foreign trade and FDI companies¡¦ conversion of profits to the host countries currencies.

Social and Demographic
In China as in third world countries, owning a car is a symbol of privilege and wealth, especially foreign brands. (tdctrade.com) At present the ratio of cars to people is very low, only 16 million cars compared to 1.3 billion people. (www.news.bbc.co.uk)
But the former nearly unattainable dream of owning a car is becoming more real for the Chinese people with the enforcement of the market-opening agreements of the WTO, attracting FDI and thereby capital, know-how and technology creating competition and lower prices. The rapid growth of the Chinese economy and substantial increases in disposable income in addition with a coming credit system will also very likely contribute to a real growth in the sales of cars. It is estimated that about one million people in China earns over 150,000 yuan (18,000 U.S. dollars) per year. According to english.peopledaily.com.cn this group bought cars priced over 40...