http://www.atimes.com/atimes/China_Business/KJ09Cb01.htmlWith 17 of every 1,000 people in China owning a car in 2008, compared with a global average of 120 per 1,000 persons, the country is already the second-largest auto market in the world. It is expected to exceed the United States to become the largest auto market by 2030. While this astounding growth is great news for the auto industry, it is disastrous for the world's most populated country.
China is running up against environmental resource constraints and an increasing dependence on foreign oil from Africa, Russia, and the Middle East. The country is already the top emitter of carbon dioxide and experiences widespread air pollution in urban centers.
The good news is that the Chinese government is not only aware of the problems posed by the prospect of fast-increasing numbers of cars on the road, but is also working to address the issue. Many major urban centers are building efficient public infrastructure and urban housing to incentivize people to get out of cars, and China has maintained heavy taxes on vehicle registration, driver's licenses, and car sales to limit the cars on the road. Nonetheless, the exponential growth curve that represents China's passenger vehicle registrations points to the fact these measures will not be able to stop the Chinese consumer.
and an increasing dependence on foreign oil from Africa, Russia, and the Middle East. The country is already the top emitter of carbon dioxide and experiences widespread air pollution in urban centers.
The good news is that the Chinese government is not only aware of the problems posed by the prospect of fast-increasing numbers of cars on the road, but is also working to address the issue. Many major urban centers are building efficient public infrastructure and urban housing to incentivize people to get out of cars, and China has maintained heavy taxes on vehicle registration, driver's licenses, and car sales to limit the cars on the road. Nonetheless, the exponential growth curve that represents China's passenger vehicle registrations points to the fact these measures will not be able to stop the Chinese consumer.
-long snip-
As Chinese domestic automakers find innovative ways to produce cheap electric cars to fulfill the demand of China's domestic market, they will be able to use this technology to expand internationally. A new generation of Chinese electric cars may help drive down the production cost of electric cars globally.
In doing so, electric cars may become the car of choice not only in China, as the fastest growing car market in the world, but also in the United States, the largest car market.
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