Sales of Chinese cars are expected to increase by up to 15 per cent over the medium term, according to Standard & Poor's ratings service.

It said that the Chinese car industry is providing the global automotive market with a much needed boost to growth, and added that other emerging economies such as India and Russia are also contributing strongly.

S&P predicts that the China's economy will grow by around 5.2 per cent between now and 2020, and with every major international manufacturer now present in the Chinese market, competition is expected to be fierce.

In addition to imports, car makers from across the world are also moving to set up business in China, often in partnership with domestic firms.

According to S&P's report, China has now overtaken South Korea to become the fourth largest manufacturer of automobile in the world, behind the US, Western Europe and Japan.



Ÿ Adfero Ltd