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.