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China’s Passenger Car Production Up 46.15% Through May

27 June 2006

People’s Daily. The production and sales of passenger cars in China from January through May 2006 amounted to 2.1677 million vehicles and 2.1127 million vehicles respectively, up by 46.15% and 44.21% respectively, according to statistics from the China Association of Automobile Manufacturers. Production and sales of commercial cars grew by 6.19% and 6.61% to 885,300 and 861,600 respectively.

Among the passenger cars, the manufacturing and sales of sedans soared by 56.65% and 55.09% to 1.5524 million and 1.5033 million respectively, Multiple Purpose Vehicle (MPV) climbed to 76,900 and 77,000 respectively and Sports Utility Vehicle increased by 96,400 and 97,500 respectively.

For the year through May, China’s automobile imports (including the complete sets of automobile spare parts) have climbed to 87,000 units, up by 80% over the same period of last year, according to the statistics released by the General Administration of Customs.

Analysts said the dealers increased car imports in the first quarter due to the coming increase of consumer tax from 1 April, but the imports saw a decline in April and further drops in May. Despite that, the imports in the first five months witnessed a surge of 80% because of the sharp increase in the first quarter.

China’s growth in demand for oil surged ahead to 13.5% in May from May 2005 to 6.5 million barrels per day, according to calculations based on official data—the fastest rate since 2004, when overall demand grew around 15%.

June 27, 2006 in China, Oil | Permalink | Comments (10) | TrackBack (0)

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China has an advantage that the U.S. and the rest of the developed world didn't when they developed their auto industries. . They have the benefit of hindsight, a long record of the impacts of the automobile on land use patterns, oil consumption, resource consumption, and the environment. Oh, and I forgot, day to day mobility. Or maybe it's supposed to be about freedom, the freedom to sit in traffic jams in giant, polluted, clogged cities.

The Chinese are desperately seeking oil all over the globe to fuel an industry that they are purposefully creating. But the only way they will have enough oil to fuel this monster will be the converstion of coal to liquids which will exacerbate and hasten the coming disaster.

If there is any doubt about the existence of Peak Oil, the Chinese are doing everything they can to dispel that doubt.

Found this car vehicle documentation
http://www.chinesecars.net/index.php?page=7

The calm before the storm; all those cars (and everything else produced/built) will come crashing down. The PRC will have to go through a period of reform like South Korea, or Japan. They have monetary problems that are larger than their foreign exchange reserves. It will be painful and necessary. Otherwise, The PRC will go belly up (depression), draging many with them. This is also a dictitorial regime with its leditimacy staked on providing jobs and wealth. It is a matter of when this will happen, and the later it is, the worse. Properly managed, they might emerge after a few years of instability as the reforms shut down many indebted/ propped up state/private companies/operations. Foreign investors and multinationals/banks have sakes in some of these ventures too. It will be the '97 Asian Financial Crisis on steroids.

I agree with you allen zheng.

China has huge problems (energy, enviroment, split of the society, just too many people). China will enter a ugly recession (together with the US slowdown and rising interest rates).

Good by pleasure, welcome pain.

Its what they must do to modernize quickly enough. Its as if there is a deadline many nations are racing toward and nothing else is as important as getting to it in time.

Oh an china will hit a recession as soon as america starts combatting global warming en mass and our econ slips gears.. We find china to a tune of .5 TRILLION a year. We also fund india and a whole slew of other countires with our purchases. When the bleep hits the fan and americans stop buying as much stuff its global and hard.

Wintermane:

That is the most intelligent posting on GCC you've ever composed. 'Awesome grammar and sentence structure. And as usual, your analysis is simply mind boggling. Keep up the great contributions.

I sense sarcasm.... Ok what do you REALY think is going to happen when america switches gears and starts realy fighting global warming? Hmm?

Do you realy expect these asshats to manage to do that smoothly? They cant manage a transition in postage stamps how in hell are they gona manage that?

The bloody obvious answer is VERY BADLY.

The housing bubble the proping up of our econ by japan and china and a zillion other countries blah blah blah. Get a clue your in a freaking basket and its getting damn warm.

But as bad as we will flub it and hose things up.. we prolly wont hold a candle to how badly alot of others will screw it up.

Oh Im sorry did you actauly have hope?

You know actauly I just answered my own question. There IS a deadline china and india are racing to beat. We are the deadline. American consumers.

What do you expect will happen when americans start to conserve? When things get all scary and tricky in conversion? When we screw up at least a dozen diffrent ways...

If we are lucky it will be a recession. But the last time we had growth like this end it was a great depression.

Although China’s inefficient energy use and production is one of the main reasons for its increasing demand for oil, the growth in passenger car production and imports is also a strong contributor. A growth of 46.15% in the production of passenger cars and a growth of 80% of automobiles imported at this time last year is detrimental to current gas prices. This can only mean that gas prices will continue to stay at the current rate, or God forbid increase, because of the continuing demand Chinese citizens will have to keep their automobiles running. With the Chinese economy growing at the rate which it is, more people are going to be able to afford to buy cars, which we can see there is not going to be a shortage of. Not only will they be able to afford new cars, but they will also be able to afford gas because of its inexpensive rate of $1/gallon. Another problem arises when taking into consideration the growing trend of urbanization in China. As people continue to move into the cities, the production and sales of automobiles will continue to rise. With the increased sales in cars comes the increased demand for oil, which, unfortunately, results in our gas prices staying high.

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