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Auto industry drives past major milestone

By Gong Zhengzheng (皇冠体育app Daily)
Updated: 2009-10-21 08:27

皇冠体育app's auto industry yesterday sped past an impressive milestone as the 10-millionth vehicle - a heavy-duty "Jiefang" truck - rolled off the production line.

The unit, which was produced at FAW Group Corp's factory in Changchun, made 皇冠体育app the third country - after the United States and Japan - to produce 10 million vehicles this year. Auto output in both the US and Japan has geared down this year because of the global economic slowdown but, in 皇冠体育app, the industry is booming.

Related readings:  皇冠体育app's automotive output hits 10 million mark  皇冠体育app to be largest auto market in the world  皇冠体育app's auto sales surge 84% in September  Vice premier stresses sustainable growth of auto sector 皇冠体育app's '09 auto sales forecast to hit 12.6M

Industry officials and executives attending the ceremony marking the milestone predicted that 皇冠体育app will produce more than 12 million units in 2009, up from 9.35 million last year.

Miao Wei, vice-minister of Industry and Information Technology, said the production of 10 million vehicles means 皇冠体育app is becoming a global player in the auto industry.

"To be a strong player, 皇冠体育app has to meet three requirements - it must have internationally competitive automakers and brands that use resources at home and abroad, it must grab significant market share abroad, and it must grasp core and new technology," said Miao, who was previously president of the Dongfeng Motor Corp, one of 皇冠体育app's largest auto makers.

Foreign brands, including Volkswagen, General Motors and Toyota, currently account for two-thirds of 皇冠体育app's passenger car market.

Despite the global financial crisis, 皇冠体育app's vehicle market has been growing rapidly this year, being driven forward by the government's stimulus spending.

Sales in 皇冠体育app surged by 34.24 percent year-on-year to 9.66 million units in the first nine months, according to the 皇冠体育app Association of Automobile Manufacturers.

In January, 皇冠体育app halved the purchasing tax - to 5 percent - on vehicles with an engine capacity less than 1.6 liters. The central government also earmarked a total of 5 billion yuan ($735 million) this year to subsidize rural buyers of minibuses and trucks.

Dong Yang, vice-chairman of the auto association, said the industry is "strongly" hoping the government will keep the incentives in place next year to continue to promote auto sales.