LMC Automotive Predicts 11% Increase for Chinese Automobile Sales in 2012 image

LMC Automotive declared that Chinese automobile sales are expected to grow 11% in 2012, which translates in 40% of automobile sales worldwide this year, compared to 24% in 2011.

J.D. Power and Associates forecast sales of commercial and passenger vehicles with a weight of six tons or less in China will expand to 35 million units by 2018 and that turbocharged engine-powered vehicles will account for 25 percent of all Chinese passenger vehicles.

In 2011 the sales in China hit 17.2 million units, 24%, compared to 33% in 2009 and 48% in 2008. In February, car sales in China rose only 2.6 percent, the slowest pace in 23 months. Although these statistics are quite bleak, Chinese automakers will probably grow at a faster rate than joint ventures with foreign companies because the domestic brands have lower price tags.

When comparing individual segments, sales growth rate changes for mid-size and entry level vehicles were the most dramatic. For the entry level model sales there was a fall from 42% in 2000 to 18% in 2011, and sales for the mid-size vehicles increased from 13% in 2000 to 37% in 2011. Sales performance of SUVs in China was also respectable, increasing from 44% in 2000 to 17% last year.