Automakers Vie for Market Share in China

April 24, 2012

The competition is intensifying in China, where automakers are competing for a share of the market in the world's most populous country. More than 18 million cars were sold in China last year, and that number is expected to double in less than 10 years.

Featuring more than 1,100 flashy, new vehicles, the Beijing Auto Show is now among the largest in the world.

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web magazine editor Tycho de Feyter says it's an important showcase of China's economic clout.

"The Chinese auto industry really wants to show off. They want to show what they have. They want to show their new developments. They want to show their new cars. So this is really important," Feyter said.

With annual sales projected to top $30 million by 2020, automakers are increasingly turning to China to drive global revenues. General Motors is opening up 600 new dealerships. And Ford Motors Asia Chief John Hinrichs says construction of two new manufacturing plants will double Ford's production capacity there.

"China is a big part of our growth plan. It is the largest market in the world and a great potential opportunity for Ford to grow our business even further as part of our plan to sell 8 million vehicles annually in 2015 around the world," Hinrichs said.

With a recent Beijing directive to have 5 million hybrid and electric vehicles on the road by 2020, many see China as a lucrative market for green technology.