Tuesday, January 22, 2008

Cars, Cars, Everywhere

Cars are quite the phenomenon in China. Of course, they are a rather new one. They tell me 10 years ago, hardly anyone owned a car. I just saw the numbers for Beijing. They say that in 2006, 790 new cars were licensed daily there. Last year, that number reached 880 new cars every day! Already, 20% of residents of Beijing own cars. No wonder they are worried about the pollution at the Olympics.

Chinese cars are also reaching the US. I understand at least five manufacturers from China were showing at the recent Detroit Auto Show. Analysts broadcasting from the event don’t think there will be significant car sales to the US until 2014. Consumers are still too shy about Chinese products after the toy scares.

There are over 100 car manufacturers in China. That is what I am told anyway. Until recently, cars were primarily regional in sales. But look out. The Chinese are very good at ramping up volume and expanding.

Even I already see an increase in cars around Dongguan. Daily my commute to and from the office becomes slower by the volume of cars on the highway, considerably slower. And most major store are surrounded by cars. Often it is hard to walk near a department store since parking was never planned, or at best, only planned for a few cars. Now cars take up the space originally set aside for pedestrians.

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