CAAM Predicted a 6% Growth in the 2016 Chinese Auto Market

CAAM, China Association of Automobile Manufacturers, predicted a growth of 6% for China’s 2016 domestic automotive market.

Officials from CAAM believed the year of 2016 will be more promising for China’s domestic automotive market compared with 2015, considering consumers’ rigid demands for vehicles and China’s preferential policies for small and alternative energy vehicles, even though negative factors, such as China’s slowing down economic growth, vehicle purchase restrictions in certain cities, the termination of certain preferential policies and the relatively depressing demands in China’s import and export market, still exist.

Based on the analysis, CAAM also predicted that in 2016 the sales of domestic passenger vehicles will increase 7.8% to be around 22,760,000 units while that of commercial vehicles will see a negative growth of 5%. The sales of alternative energy vehicles will be around 700,000 units. And the import and export of vehicles in Chinese market will see a decrease of 20% and 10% respectively.

To be noted, CAAM believed the alternative energy vehicles will be the next big thing in the future. Statistics shows the production and sales of alternative vehicles were 340,400 units and 331,000 units respectively in 2015. Contributed by China’s related preferential policies,alternative energy vehicleswill land on a fast track and also make positive contribution to China’s overallauto market in 2016.