China\'s automobile industry is in rapid development since the year 2000. In 2006, 7.189 million motor vehicles were manufactured in China, surpassing Germany as the third largest automobile maker, after Japan and the United States. China is the second largest car market in the world.

China is set to become the world\'s second largest new automobile growth market by the end of 2006 and this growth is spurring demand for automotive parts, services, and after-care products. China is presently capable of manufacturing a complete line of automobile products and large automotive enterprises. Major domestic firms include the China First Automobile Group Corp. (FAW), Dongfeng Motor Corp. (DMC) and Shanghai Automotive Industry (Group) Corp. (SAIC).

China had a total of 6322 automotive enterprises by the end of November 2006. The total output value of the automotive sector for the first three quarters of 2006 was US$143 billion. Since 2002, 50% of all motor vehicles (cars and trucks) in China had been purchased by individuals. As incomes increase the high annual growth rate of private ownership is expected to accelerate.
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