Total Annual Sedan Sales Passed 1,000,000 For the First Time in 2002
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| Like almost every other automotive brand, Audi is cashing in the profitable new Chinese market. Volkswagen, Audi's parent company, was the first to strike a joint venture alliance with a Chinese firm in 1985. (Photo: Audi) |
While North America's auto industry is embroiled in an incentive war to induce new buyers, China's carmakers recorded gross profits of 43.1 billion yuan ($5.21 billion USD) in 2002, 60.94% that last year's profits, according to the State Development Planning Commission.
Of course when an industry is in its relative infancy, its growth rate will always outpace a mature market, but still 2002's profits, based on output at foreign joint venture plants in China, were only up 30.8% to 646.5 billion yuan in 2001 compared to year 2000 growth.
Its no wonder the auto industry's big players have jumped in with both feet. And it's a good long term bet too as there's not much doubt, except for the possibility of political unrest, about the Chinese market's future.
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| At first glance the SUVs in the photograph look an awful lot like Isuzus. But looking in China the GM controlled Japanese subsidiary's products are branded Landwind. GM has made some very aggressive moves into China lately. (Photo: Landwind) |
But people are less likely to revolt if they're making money, and in many parts of China incomes have risen recently, due to its burgeoning and diversified manufacturing industry.
"Auto demand was an important force driving economic growth in 2002," the commission stated.
China's auto manufacturers delivered 3.248 million vehicles to new homes in 2002, 37.1% more than in 2001. Year 2002 vehicle output also rose to 3.25 million units, up 38%.
Total annual sedan sales passed 1-million units for the first time in 2002, swelling 56% to a final 1.126 million. Car output reached 1.09 million, rising 55%.