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Tackling auto boom issues

By Li Huayu (chinadaily.com.cn)
Updated: 2008-04-21 18:02

Dr. Thomas Schiller (R), Managing Director for China of Arthur D. Little, in a talk at the 2008 Beijing international auto show that will run from April 20 to 28.[chinadaily.com.cn]

Schiller said that the growth of the Chinese car market will be higher than other markets but slower than the last few years. He expected growth rates for 2008-2012 to be 19.7 percent, 14.8 percent, 12.9 percent, 10.1 percent, 10.0 percent, respectively.

The industry is changing the daily lives of Chinese people. "It has created a lot of jobs," said Schiller.

Statistics from the National Development and Reform Commission show that the auto industry had created one sixth of the jobs for the Chinese people.

It helped upgrade the entire manufacturing technology as global automotive brings their suppliers in China, said Schiller.

It has also "helped to upgrade many manufacturing process capabilities for Chinese suppliers, in such areas as sheet metal, iron molding, plastic, electronic, etc."

- The gloom

Fossil fuel combustion, particularly as it occurs in motor vehicles, has been identified as the largest contributor to air pollution in the world.

Air pollution costs China 3.8 percent of its gross domestic product (GDP), said a World Bank report.

Estimates show that in Beijing's air, 74 percent of hydrocarbons, 63 percent of nitrous oxide, and 50 percent of nitrogen oxide comes from motor vehicles.

As cars become increasingly affordable, more Chinese want to buy them. It has been predicted that some 9.6 million units will be sold in 2010. If the current pace of expansion continues, there will be 140 million motor vehicles on China's roads by 2020.

While making the roads more crowded, the sharp increase in vehicle uptake is boosting China's demand for oil. As a result, Chinese experts now expect oil shortages to become a chronic problem.

(For more biz stories, please visit Industries)

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