Auto Sales Growth to Slow to 5-7%
Growth of vehicle sales in China is expected to decelerate to 5-7% in the next 5 years as a period of explosive growth comes to an end, according to a report by AlixPartners. The competition in China's auto market is getting fiercer, with domestic carmakers struggling to address excess capacity, the report said, after surveying 100 executives of carmakers in China. Just 65% of the auto production capacity in China is currently running, while carmakers have to use 80% for stable profits, according to the report. China's vehicles sales rose 4.3% to 19.31 million units in 2012.
Urbanization Rate to Hit 70% by 2030
310 million Chinese farmers are expected to migrate to cities by 2030, taking the nation's urban population to 1 billion and urbanization rate to 70%, according to a UN report. Only 191 million Chinese lived in cities in the 1980s, and now 700 million, with an urbanization rate of 52.6%. Over 20 million migrant workers are expected to settle down in cities through 2030. Urban gross domestic product is expected to make up 75% of China's total in 2030.
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