China became the world's largest auto market in the first six months of 2009, according to a new report from People's Daily Online yesterday (3rd August).

A total of 4.8 million vehicles were sold around the world during the first half of the year, representing a 35.1 per cent decline from the equivalent period in 2008.

Statistics obtained by the Xinhua news agency suggest that major markets such as the US, Japan, France, the UK, Canada and Russia all saw auto sales and production decrease.

The US and Japan recorded slumps of 35.1 per cent and 21.5 per cent respectively, while the other four all incurred double-digit declines.

Despite worldwide demand slumping by almost 18 per cent, the picture was brighter in China, where sales increased by 18 per cent, aided by government stimulus packages.

As a result, the People's Daily Online speculates that the country has now surpassed the US as the world's largest auto producer and auto market.

Germany also benefitted from scrappage incentives for consumers buying new cars, leading to a 20.9 per cent year-on-year increase in sales, while Brazil was the other major nation to post an improvement.

Sources:

China becomes world's biggest auto maker and market (03/08/09)

Chinese market becomes attractive to automakers (03/08/09)

Ÿ Adfero Ltd