Automotive researchers predict that the new technology will be the boosting factor for buying behaviour and expecting the sales of as much as 50 million units in next four to six years

Think tank at China government has forecasted that the buying behaviour is changing with every passing year in China. This think tank, with the collaboration of local auto researchers, has predicted that the auto sales in the China are increasing significantly and this boost in sales will reach to as much as 50 million units in few years, however China has maintained its position in the global market since 2009 as world’s automobile sales champion.

Liu Shijin, Deputy Director of the Development Research Center of the State Council said, “My logic goes like this: now every 1,000 US people have 800 vehicles and 1,000 Europeans have 600 vehicles. Even if we Chinese are frugal and 1,000 people own 400 vehicles from 2018 to 2020, that would be at least 50 million units,”

Figures given by the researchers’ show that, every 1,000 Chinese own only 100 or even less cars and the large amount of these owners is from urban areas. In China, Liu Shijin’s research centre and Chinese auto industry, Society of Automotive Engineers of China and Volkswagen Group in China released a bluebook every year on overall Chinese auto industry, and this time Liu Shijin made his remarks in the book and said that the auto market in China does not have issues like excessive production capacity from the steel industry or other vendors, and this strength will help the market to get some oomph in coming days.

Overall Chinese economy is doing better and Chinese industry registered a 10 percent growth in the GDP in first six months of the year and it is 2.5 per cent more than the same period in last year. He further added that people are buying cars more frequently and old users are also changing their cars with new models because of new technologies. This increase in the sales has been dominated largely by the new technologies, use of internet in cars and renewable energy technologies.