Chinese market opts for smaller cars 6th June 2005

Smaller cars are reportedly getting more popular in China.

The world's fastest growing economy has seen a massive rise in demand for consumer goods in recent years.

Previously, larger cars dominated the market with government buying a key contributory factor.

But according to reports more economical vehicles are now the major growth area.

Associated Press, citing figures from the China Automobile Manufacturers Association (CAMA), said the top three selling models in the first quarter of 2005 were all economy vehicles.

Analysts expect this trend to continue as people on lower incomes begin to look at larger purchases like cars.

"This should continue for some time," automotive specialist Yale Zhang told AP. "Private demand for small, family cars is pretty stable."track


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