The China Auto Industry Association (CALA) has released the latest statistics on China's ever-growing auto industry.  In 2006, China's total auto production rose 27.32% to 7.279 million units, while sales volume jumped to 7.216 million units, a 25.13% increase from the previous year.  While overall consumption is expected to retain double-digit growth, the sedan is likely to outpace the average.

According to the CAIA, in 2006 China's passenger vehicle market saw a 32.76% increase in production, putting out 5.231 million units, and sales jumped by 30.02% to 5.176 million units.  Sedan production went up 38.25% in 2006, while sedan sales jumped 36.86%, meaning sedans accounted for 3.86 million units of overall production, and 3.82 million units sold, making sedans the driving force behind the passenger vehicle industry's growth.  In 2006, Chinese automakers launched 117 new models of sedans, SUVs and MPVs.   The ten best-selling sedans were made by Shanghai General Motors, FAW Volkswagen, Shanghai Volkswagen, Chery, Beijing Hyundai, Guangzhou Honda, Toyota, Geely, Dongfeng Peugeot Citroen, and Dongfeng Nissan.

Multinational automakers also considerable growth in their China sales in 2006.  General Motor's sales jumped by 22.3% to 628,807 units, while Toyota saw a 68% increase in sales, reaching 308,000 units.  General Motor's sales volume totaled 876,700 units, up 32% on the year, and Ford's sales volume climbed 86.6% to 166,722 units; Mercedes-Benz saw a 32% increase in sales volume at 21,200 units, and BMW's 36,357 units indicated a 51.3% increase.

Such positive numbers from 2006 encourage these makers to set even higher sales objectives for 2007.  Given its annual growth of 40% over the past three years, FAW Toyota has set its goal for this year at 260,000 units, with sights set on at least 350,000  in 2008 and 450,000 or more in 2009.  Guangzhou Honda, a joint Japanese venture, plans on selling 310,000 units this year, while Dongfeng Nissan is aiming to sell 300,000 sedans in 2007.

"Hatchbacks will be very popular in 2007," says Shanghai Volkswagen marketing director Wang Feng.  "This is why we chose to launch the Bora HS around the New Year."

Hatchback sedans have been gaining market ground since 2006, and challenge more traditional models.  Last year, several automakers' new hatchback models, including the Peugeot 206 hatchback, Shanghai Volkswagen's POLO hatchback, Changan Ford's Focus and FAW Tianjin's Weizhi, achieved satisfactory results on the market.  Having launched the Citroen C2 and Bora HS in 2006, Dongfeng Peugeot Citroen will likely introduce two more strategic hatchback models this year.