China to outclass Germany in automobile producer in 2005:

[World News]: Beijing, Feb 6 : China's automobile production is set to grow by 20 per cent this year to a record six million plus vehicles, replacing Germany as the world's No. 3 producer, an industry association said.

Despite slack auto market in the latter half of 2004, China is expected to churn out more than six million cars in 2005, up 20 per cent compared to last year, replacing Germany the 3rd largest manufacturer of motor vehicles, vice-president of the China Federation of Machinery Industry (CFMI), Zhang Xiaoyu said here.

Germany produced 5.5 million vehicles in 2004, the No. 3 producer behind the United States and Japan.

China's auto market slowed down considerably last year due to speculation that auto prices will be further reduced, Zhang said.

"The market potentials have been delayed, which does not mean the lack of market demand," Xinhua news agency quoted Zhang as saying here yesterday.

In 2004, domestic manufacturers turned out 5.0705 million motor vehicles, and sold 5.711 million entire car units, representing increases of 14.11 per cent and 15.50 per cent respectively compared with 2003.

As prices are down to the lowest possible level this year, auto sales will finally pick up its momentum, Zhang said, predicting that the increase could be up to 20 per cent.

China is the world's fastest-growing auto market due to rising incomes of Chinese people. Foreign auto makers have poured billions of dollars in the booming Communist nation to start manufacturing facilities to cater to the growing demand. PTI

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