Vehicle Market in China Growing

Although not quite at the pace of last years sales, major global automakers such as GM, Toyota, and Ford have reported moderate sales increases for the month of August. GM reported that their sales were up 19% from August of 2009, while Toyota reported a 16% increase and Ford 24%. In a month notorious for slow sales in the automotive market around the world, these moderate increases can be viewed as a success for each company. These sales may be due to government offered discounts and incentives, but the important trend to notice is the newly expanding automotive markets countries such as China.

 A senior Ford executive told the Wall Street Journal that he expects 70% of the companies global growth this decade to come from the Asian-Pacific region including markets such as China and India. Newly emerging markets such as China and India are arriving at an opportune time as the critical markets of the US and UK are struggling. Globalization is having a major effect on the auto industry because these new foreign markets help major US based makers to survive in a tough economy. The industry will continue to grow as long as new markets begin to develop and a demand for automobiles exists.

Morgan Duff


http://online.wsj.com/article/SB10001424052748703431604575467272785951934.html?mod=WSJ_auto_IndustryCollection