As the world's biggest auto market in 2014, China's auto sales continued to expand to strengthen its position. With 23.49 million units sold approximately, a year on year increase of 6.9 percent, the auto sector seemed to play a big role in boosting the weak macroeconomic environment, the report said. But automakers are not blindly optimistic about the market in 2015 due to the factors that may drag down the auto sector.
By the end of 2012, the vehicle ownership in China has exceeded 0.12 billion, increasing by 63.92 million compared with that at the end of 2007. Such huge inventory and demand size indicates that automobile market is gradually forging into the peak time of renewal, and the role of scraped vehicle recycling and dismantling in automobile industry and circular economy will be more significant.
Existing polices have already created a fertile environment for the sector to expand, said Zeng Xiao'an, director of the ministry's economic construction department. China will create a favorable environment to foster quicker growth in the new-energy vehicle sector through fiscal policy and the government would also help improve innovation in the sector, Zeng said.