Chinese enjoy more lifestyle choices at the wheel ( 2004-01-01 15:26) (Xinhua)
Chinese consumers are buying cars at an ever greater rate, spurred on by new
government policies that allow banks to lend on vehicles and, for some of them,
by the desire to impress the neighbors.
Over 3.91 million motor vehicles were sold out of 4 million manufactured in
the January-November period of 2003.
"China's auto demand is expected to rise to 10 million by 2010, second only
to North America," said Zhang Xiaoqiang, vice ministerin charge of the State
Development and Reform Commission in mid-December.
Rising income accounts for only part of the buying frenzy. A car, like a
laptop computer and a house, has long been regarded asa coveted emblem of a
middle-class life.
The Chinese government's policy to encourage individuals to buycars or houses
by installment through bank credit has given a strong boost to consumption of
luxury items.
The concept of credit is relatively new in China.
"I just have to pay a 20 percent down-payment, a mere 40,000 yuan (4,820
dollars) of the total cost, and the rest will be covered in eight years by a
monthly payment of 1,600 yuan (193 dollars)," said Wang Zong, an air-conditioner
company manager who has just bought a new car.
"Next year will see auto production reach 5 million. It's no big problem to
increase by 1 million if auto-related policies remain stable," said Li
Jingsheng, director of the China auto information research institute.
Major world automakers, including German's Volkswagen and BMW, General Motors
of the United States, and Toyota and Nissan of Japan, have rushed to enter the
lucrative market by forming joint ventures and strategic alliances with Chinese
partners.
The 110,000 yuan (13,300 US dollars) Jetta produced by FAW-Volkswagen, the
joint venture between Volkswagen and China's FirstAutomotive Works (FAW), are
popular for stable performance on the Chinese market.
Luxury cars like locally produced the BMW-3 and BMW-5 series have also been
well received by the Chinese. Some 800 were sold since their debut in
mid-October.
Among domestic cars, this year's star QQ, a mini-car launched in summer, has
been in the spotlight. It's competitive price (49,800 yuan or 6,000 dollars )
and colorful looks make it a "pet" formany young people.
"Owning a car is no big news now. Some people come to me and decide to buy a
car within one hour as if they are buying a TV. It's amazing," said Gao Lelin, a
car salesman at the Yayunchun auto market, the biggest of its kind in Beijing.
"It's especially true when the price is below 150,000 yuan," Gao said. He
referred to the amount as "affordable" for many families nowadays.
But it was unimaginable two decades ago when China was at the threshold of
reform and open-up. A TV set, sewing machine, bicycle and wrist watch were four
big "household items" longed for by most Chinese, who never even dreamed of
owning a car.
"A car means more lifestyle choices for the Chinese," said WangZong, the
air-conditioner company manager. "You can still ride bikes or walk to enjoy the
fallen leaves on the sidewalk, but surely a car will wheel you to a more
exciting life."
It has become a common practice that car owners drive tens or hundreds
kilometers away to enjoy leisure time in tourist destinations, or visit
relatives and friends in other cities.
