With some analysts suggesting demand for new cars could grow by as much as 20 percent in China this year, the world’s largest automakers are setting their sites on this growing market. The demand for new cars is being partly fueled by government subsidies and manufacturers are counting on demand to remain strong once the government moves to eliminate the subsidy.
“China’s motorization is reaching the masses,” said Takanobu Ito, Chief Executive Officer of Honda Motor Co., Japan’s second-largest carmaker. “Even after the tax break ends, demand shouldn’t drop very much.”
Source: Bloomberg
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