"The world's largest car market in 2021 is about to widen its gap with the rest of the world significantly, with China driving away from everyone else," said a latest analysis from the German Center for Automotive Research.
BERLIN, April 16 (Xinhua) -- The 19th International Automobile Industry Exhibition, the Auto Shanghai 2021, which is set to begin next week, will be a showcase of the strengths and confidence of Chinese car manufacturers, according to the latest analysis from the German Center for Automotive Research (CAR).
Chinese car manufacturers will come to Auto Shanghai, the only expo to run "normally" in the middle of the coronavirus pandemic this year, with a "plethora of new models," highlighting advanced technology and key precursors to autonomous driving, according to CAR.
Compared with many countries in Europe, China has been pushing for technological innovation at a "rapid pace and with unparalleled momentum," and has become a market "that is the center of the auto world and that no one can do without," the analysis noted.
Overall, the CAR believed that China would stand up well in the coronavirus pandemic compared to nearly every country in the world. Life in many parts of China was almost back to normal and China's economic growth was "tremendous, which is particularly felt in the auto market," stated the CAR.
By early 2021, the number of vehicles on Chinese roads had climbed to 287 million, according to the CAR. No other country in the world had more vehicles on the road since the start of 2021. With 1.4 billion people, it would correspond to a vehicle density of 205 vehicles per 1,000 inhabitants.
In the United States, on the other hand, vehicle density was already 871 vehicles per 1,000 inhabitants. While the U.S. market was saturated, China still has "great growth potential," according to the CAR. The high economic growth would allow this potential to be exploited as China's car market was growing faster than GDP.
In the first three months of this year, car sales in China rose 76 percent year-on-year to 6.48 million passenger vehicles. For the full year, the CAR is expecting 24.7 million passenger car sales in China. "The car market is driven by high economic growth in China."
According to CAR, China was set to account for 32.4 percent of all passenger cars sold worldwide next year. By 2025, 30.2 million new cars would be sold in China, making the Chinese car market about ten times larger than the German car market.
"The world's largest car market in 2021 is about to widen its gap with the rest of the world significantly, with China driving away from everyone else," the analysis stated.