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China 3-Year Plan for Auto Industry Targets Average 10% Growth, Consolidation

The government of China is targeting an average 10% growth for automotive industry production and sales in the next three years, according to an online government document providing details on the support package for the automotive industry, announced in January.

The government expects 10 million units in both vehicle production and sales this year.

By 2011, passenger cars with an engine displacement below 1.5 liters will take 40% of the market, and those below 1 liter would have a 15% share, according to the document.

China would also form two to three auto giants with capacities reaching 2 million in vehicle production and sales, and four to five smaller companies with capacities greater than 1 million in the next three years through mergers and acquisitions, according to the document.

The auto support package was one of ten industry initiatives by the government since January in a bid to cope with the downturn in the short-term, and upgrade its industrial structure for the long term.


The per capita energy consumption of Chinese citizens will increase. Good for them! As their economy grows their citizens will enjoy more education, cleaner water and happier lives.

Unfortunately the G-5's goal of no increase in emissions while the world's demand for energy increases is not possible unless the world changes how it produces energy. Cogeneration is the only proven technology for achieving efficiency levels in excess of 60% from burning fossil fuels.

As the genius GCC crowd knows, Diesel and Otto cycle engines achieve 30% to 40% AT BEST! With stop and go traffic, transportation energy production is likely less than 15% to 20% efficient. The electrification of transportation will help but it is not the only part of the solution. Distributed cogeneration of energy from petroleum which 60% to 85% is now possible. Smart grids employing cogeneration piston turbine technology are available to the developing world, and here in America as we rebuild our infrastructure.

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