Compared to the fierce competition of household air conditioner market, Car air conditioner market in china is still in its infancy. Due to the fast economic growth of China and continual increasing of car retention rate in China, the car air conditioner market will witness a rapidly growth. However, its development will also unavoidably encounter some difficulties.

1) Continual Expansion of china car air conditioner Market

In china, 8.79 million cars were sold in 2007 and the figure is expected to reach 10 million ten million by 2010. Accordingly, the car air conditioner market will also achieve a certain growth (about an annual rate of 15%) during the period. The Market value of China car air conditioner was CNY 3.5 billion in 2007. According to China Refrigeration Air-Conditioner Industrial Association, 9.1 million air-conditioning compressor was produced in 2007 in china. The supply of car air conditioner is expected to reach as many as 13.8 million by 2010.

2) Air Conditioner Market Growth Rate tends to be decline

China Auto market has been fast growing since the year of 2005, however, considering the high cost and possible hard landing of national economic, the growth rate of China auto market will drop to around 10% in the coming years.
Correspondingly, car air conditioner manufacturers also face the challenges such as high cost, supply is not able to meet the demand from trucks and special vehicles and the technical challenge  of energy saving and environmental protection.

3) China Car Air Conditioning Compressor Market

The output of car air-conditioning compressor surged to 6.93 million in 2007 from 1.29 million in 2001 with the annual average growth rate of 34.4%. The figure is expected to reach 7.3 million with a year-year growth of 25.1%.