Two years ago, J.D. Power predicted that China would surpass the U.S. as the world’s largest auto market in 2025. Well, they were off by 16 years. China has officially overtaken the U.S. as the world’s biggest market for autos. The first time any other country has bought more vehicles than the nation the invented the automobile. Now that the Chinese buy more vehicles than Americans, it could produce ripple effects for the environment, gas prices, and even the kind of vehicles car automakers design.
More than 12.7 million cars will be sold in China this year, up 44% from the previous year. This surpasses the 10.3 million forecasted sales for the U.S.
Investment Implications: U.S. Population = 300 million. China Population = 1.3 billion. Vehicles are just one aspect of the expected increase in consumption by the world’s most populated country: China. We have and will continue to deploy capital to take advantage of the shifting consumer trends taking place in China.
Source: AP Business Writers, Google
