China overtook the United States as the largest auto market in the world in January, according to data published by Chinese state media on Tuesday. Analysts said the United States was likely to quickly regain the top spot, but the figures showed China was on track to become the undisputed number one car market much sooner than expected as its population grows wealthier.
A total of 735,500 automobiles were sold in China last month, the official Xinhua news agency reported, citing the China Association of Automobile Manufacturers. By contrast, 656,976 vehicles were sold in the United States, according to preliminary estimates issued last week by market research firm Autodata.
"China had a strong month and the US probably had its worst month in a long time," Michael Dunne, a Shanghai-based analyst with research firm JD Power said. Exploding car ownership is one of the most visible manifestations of China's frantic economic development in recent years. It has been fuelled by the growth of an urban middle class, which may number 100 million or even more, depending on the exact definition.
Despite the strength of China's January sales, they were still down 14.35 percent from a year earlier, Xinhua reported. Sales were down 0.83 percent from December when 741,600 vehicles were sold. Analysts said January was an unusual month because the Lunar New Year boosts sales in China as the United States sees a post-Christmas drop, and the United States was expected to remain the world's largest market for the full year.
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