While China’s auto market is still growing at rates that would make the States and Europe green with envy, the boom years of the last decade appear to be over.
According to Bloomberg, the Chinese auto industry is set to grow less than 7 percent this year. And a new normal is pegged at an average of 5-10 percent growth for the next few years. This is compared with an average of 24 percent growth during the previous decade.
The slowing of growth comes as Chinese cities attempt to do more to curb congestion and improve air quality, effectively limiting more car purchases.
Still, Bloomberg‘s analyst expects China to surpass the U.S. this year as the largest market for alternative energy vehicles. Which means companies entering with cleaner cars may fare better in this “new normal” for the Chinese market.
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