Auto sales in China are expected to reach eight million units this year, up 15 percent from last year. The sales of passenger vehicles will keep soaring in 2007, spurred by the strong demand from individuals. As well, the price war between manufacturers will continue for more market shares.

The government is unlikely to issue new policies this year, which will give the whole industry a chance at developing.

Manufacturers should develop more models to meet consumers' strong demand to own a "unique" car. Luxury cars will continue to account for a major part of the total imported vehicles.

China has replaced Japan as the worlds second-biggest auto market for the first time last year when the strong demand pushed sales soaring over 25 percent year-on-year. Chinese auto makers sold 7.21 million vehicles in 2006, versus 5.75 million units a year earlier, according to the Association. Vehicle output also jumped 27.32 percent to 7.28 million units over the previous year.

China, which has a vehicle population of 40 units for every 1,000 people, ranked second in the world for new car sales last year, compared with 5.72 million vehicles sold in Japan. The United States was first with 16.6 million vehicles.

Home-grown models assembled by domestic car makers including Chery Automobile Co Ltd, Geely Holding Group as well as Brilliance Automobile Co Ltd, also contributed to the booming sales.

The market share of self-branded models accounted for 41 percent, or 2.14 million units, of the total passenger car sales last year.

Shanghai Automotive Industry Corp was the biggest Chinese vehicle supplier with 33 percent acceleration in sales to 1.22 million units, followed by First Automobile Works and Dong Feng Motor Corp.

Source:未知