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China car sales surge ahead of US

Posted Jul 09 2009, 05:51 AM by Douglas McIntyre
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The notion that the U.S. is the world’s largest car market is gone, perhaps forever. China’s light vehicle sales rose 48% in June to 872,900.

The world’s most populous country will produce sales of at least 10 million cars, SUVs, and pick-ups this year. The U.S. number is not likely to top 9.6 million. China’s GDP is rising at 7% or better. It is hardly in a recession. Its large middle class has access to billions of dollars in capital, partially because of the country’s new $585 billion stimulus package.

The news is an indication that the auto market share war in China will heat up as local companies fight with foreign operations such as GM and VW for sales. Chinese car companies have joint ventures with car firms based in Japan, the U.S., and Europe. The concern of the outsiders is that China’s auto manufacturers will take what they have learned about product development and manufacturing to build their businesses and take a growing percentage of overall sales.

Companies such as General Motors (GMGMQ) may face an uphill battle with the local automakers in China, but they still have to fight it. The largest U.S. car firm may never recoup the unit sales it had in America in 2004 and 2005. GM’s recovery may depend to a very large extent on how well it can do in the Chinese market.

The distance between vehicle sales in China and those in the U.S. is bound to grow next year, especially as unemployment in America passes 10%. It would not be unimaginable to think that China could produce 20% more sales than America does in 2010.

Top Stocks blogger Douglas A. McIntyre is an editor at 24/7 Wall St.

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Comments

 

What I worry the most is the uncontrolable growth in China, just adding more pollution....

Before we can get excited that China has larger car sales than we do, I think we need to factor in the number of people over there who never had cars to begin with.  Isn't it more of an emerging market as compared to the U. S.?  Maybe we should study our current sales of bicycles, motorcycles,  compared to their sales in that category at this moment in time.

Just another indication of how stupid our policies are.  The big car companies are already other their, lock, stock and barrel, but our trade policies are turning this country into the China of old.

Just another indication of how stupid our policies are.  The big car companies are already other their, lock, stock and barrel, but our trade policies are turning this country into the China of old.

ALL THE MORE REASON TO BUY AMERICAN.WHAT EVER HAPPENED TO AMERICAN PATRIOTISM AND PRIDE. ALL I HEAR IS HOW MUCH BETTER FOREIGN PRODUCTS ARE. HOW ABOUT WE TAKE CARE OF OUR OWN BEFORE WE WORRY ABOUT THE REST OF THE WORLD. I DRIVE TWO CHEY CARS AND AM PROUD TO SAY THAT I DO. THERE IS ALWAYS SOME EXCUSE AMERICAN CARS ARE BUILT IN MEXICO OR CANADA, MAYBE THAT IS TRUE BUT THE PROFITS COME BACK TO THIS COUNTRY. SUPPORT AMERICA BUY AMERICAN

a toyota is more american made then a chevy now days......the old days of "KNOWING"  its made in america are gone.  but on the up side chevy has been doing extreemly well over in China.  climb in a ford ranger and then into a toyota tacoma and the darn dash boards are almost identical. the botom line is car companys manufacture were its cheepest to do so.  when they reinvest in materials and  the like, the same applys.  if you want to invest in america, buy from local busnesses in your area is the best way. the car manufacturers are all quite diluted and parts and work comes from all over the world.

Keep buying from Walmart yea it's cheeper but it's china products will kill this

country just like there cars, 3,000.00 motorcycles, ect.

First every american has the right to chose but if you buy forign we loose JOBS

that spend money in the usa then the domino effect starts to kill our market

values just like our medical system is going to fail from greed and tax reform is

needed now or were going to sink where nobody is working and then there is

bartering to stay alive.

The middle class has keep this country going untill now because every job wants

college grads well my son has 2 years in college to be a phisical theripest but

only 15 students can get into the next class so he has to wait and choose another

2 years somewhere else untill he can go onto the next class IF HE CAN GET IN,

I worked 32 years in a power plant burning oil,gas and coal without college and

had on the job training as a electrician with high voltage so what i'm saying is

good people don't need college for some jobs if they get a break to prove

themselves and provide for there families like i did, the last year i worked 1,000

hours in overtime in 2000.

All i can say is the middleclass is taxed to death where we can no longer help our

children get a good solid start in life, so start buying AMERICAN or GOD HELP US..

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