Chinese car production soars due to high demand
Chinese state media has reported that annual car production in China has accelerated and topped the 10 million mark for the first time and is set to overtake the world’s leading economies.
Only the US and Japan (the world’s number one and two economies) have produced 10 million cars in a single year.
China’s car industry has expanded rapidly over the last few years and in January 2009, it became the world’s largest car market when sales outperformed the US for the first time.
Carmakers in China are struggling to keep up with growing demand after state incentives, which include tax cuts on cars with engines smaller than 1.6 litres, resulted in a hike in sales.
Like many other Governments across the globe, China has implemented a scheme which allows consumers to trade in their old car.
The schemes have been extremely successful and resulted in strong sales in many major economies.
The car scrappage scheme in the UK proved so successful that the Government recently announced an extension of the scheme.
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