Possible war not expected to affect China car market
26/2/2003 15:28
The prospect of a U.S.-led war against Iraq will not greatly affect the
Chinese automobile industry, said Jiang Yuechun, researcher with the China
Institute for International Studies.
Market demand and consumption
capability are the two main factors determining consumer actions, Jiang
said.
Unlike developed countries with nearly saturated markets, in China
only two percent of families own cars, and many middle-class families will be
able to buy cars in the next three to five years, creating a huge potential for
consumption, Jiang explained.
Interest on the part of foreign makers in
the Chinese market is increasing, and many major auto makers have already
entered the market, Jiang said.
Fuel prices account for a relatively
small portion of costs, so war-influenced hikes will not have a great impact on
car buyers, he said.
Wendy Zhang/ Shanghai Daily news
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