Biggest-ever Guangzhou auto show underway

December 24, 2010

The 8th China (Guangzhou) International Automobile Exhibition, one of China's top three auto shows, is underway in the southern metropolis from Dec 21 to 27.

More than 600 carmakers and parts manufacturers registered to participate the exhibition, the largest Guangzhou auto show ever, which covers an area of 16,000 square meters, according to the organizing committee.

More than 500,000 participants including exhibitors, purchasers and visitors are expected, said the organizer.

Senior executive of international auto giants such as Volkswagen, General Motors, Mercedes-Benz, BMW, Toyota and Nissan will also be present, showing their commitment to the world's largest auto market.

China's auto production and sales this year both are set to increase more than 30 percent and reach 18 million units to take the global crown for the second consecutive year.

In 2009, China surpassed the US as the world's biggest auto market.

Analysts and industry insiders said growth will continue for the next three to five years - but not continue the torrid pace of this year - and competition will intensify.

According to a recent survey by automotive news website gasgoo.com among over 3,000 industry insiders, 24 percent respondents said the car market will increase 10 to 15 percent, while 37 percent have more conservative predictions of below 10 percent. Fourteen percent of respondents even forecast negative growth.

It is believed that urbanization and increasing individual wealth will stimulate growth, while environmental and traffic pressure might have a dampening effect.

---From peopledaily.com