2010-11-30 17:56

Auto sales growth in the Chinese market will reach 30 percent in 2010, but might slow to 10 percent in 2011, China Business News?reported Tuesday, citing a report from the US-based J.D. Power and Associates.

Chinese officials have recognized the troubles brought on by the rapid increase of automobiles on the street, including traffic congestion, pollution and unrestrained expansion of production capacities, according to Zhu Ming, an analyst at the US research company.

The government will restrict the industry from growing as it did in 2010 and 2009, Zhu said.

Zeng Zhiling, the Asian president at J. D. Power and Associates, said the stimulus policies will exit in 2011, on a basis of stable auto sales growth.

In 2010, domestic automakers have used about 88 percent of their manufacturing capability, while joint ventures with international companies have found ways to produce beyond their expected daily capacity. But that rate might fall 10 percentage points?in 2011, according to the company's report.

Zhu also expects China's auto industry will see a fierce price war in 2011, as automakers will be challenged with managing a surplus in production.