China's Car Sales Growth Problems

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China's Car Sales Growth Problems

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China used to be a bicycle kingdom. Common images of China back in the old days is a country where almost all people rode on bicycles so that it would already seem to be a very healthy place to be in. Times are changing fast, though, and rapid developments in the Middle Kingdom could soon erase this once-touted image of environmental conservation.

In fact, China is now on the opposite end of the spectrum, with a notorious black fog hovering above China's largest cities because of air pollution in factories and cars. Roughly 2,000 cars are bought in China everyday, a trend that has been very beneficial for struggling automakers but dismal for ordinary Chinese citizens. Because the infrastructure cannot keep up with the growing demand, expect Chinese infrastructure to get clogged up.

You know it's actually bad when a gridlock in one of the highways leading out of Beijing takes more than 10 days to clear up, which is the case last year for the Beijing-Zhangjiakou highway. The gridlock has been attributed to the increase in number of cars and trucks plying the highway.

For automakers, this also poses a possible road block in the not-so-distant future. Since these Chinese megacities can only accommodate so much, you cannot expect all of the people here to own at least two cars in their garage in the future. Heck, it's even impossible to expect that all people will have garage in megacities like Beijing and Shanghai. So when you can't expect that, there will always be a tipping point when it comes to car sales even though the general population gets wealthier as time goes by.

But that is still in the future. For now, automakers will have to enjoy their rejuvenated statuses by increasing their car sales even further.

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Tags: • shanghai • beijing • gridlock • china • automobile • car sales • car problems •

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