China could reach one billion drivers image

Have you seen that almost all recent news about China and the automotive sector point out one way or another to the need for less polluting cars, the curbing of smog or the decrease of traffic jams?

Well, we hope you were never on a traffic jam in Shanghai or Beijing, a really scary bumper-to-bumper traffic situation. That’s because what’s worse has not come yet – Shi Jianhua, deputy secretary-general of the state-backed China Association of Automobile Manufacturers, predicts that within 10 to 15 years the Asian country – the biggest automotive market in the world, could have no less than one billion drivers. For a good comparison basis, according to the Ministry of Public Security there are only around 280 million drivers on the roads in 2013.

During a Beijing forum, Shi contended that presently the country could only accommodate around 300 million drivers at the current roads and related infrastructure situation. Also, according to the Association of Automobile Manufacturers, the number of privately owned cars is set to jump from 127 million last year to 200 million units in 2020 in the country.

While many cities are imposing or already have in place quotas on new cars, the rising number of drivers could prove to be a gold mine for the car rental companies in China, an industry that it’s still in the early stages of development locally.

Via Bloomberg