China is now the world’s biggest automobile market, both in terms of production and of consumption. In 2012, approximately 15 million passenger cars were sold nation-wide. The total inventory of passenger cars that year reached a staggering 120 million cars, out of which about 95 million cars are privately owned. Even though the increase in car sales is projected to level off in the next few years, prospects remain positive. Levels of car ownership are still far below those in developed countries: in China, urban car ownership per 100 hundred families hovers around 18%; in rural areas, only 6 out of 100 families possess a car. In contrast, penetration rates in developed markets not untypically exceed 100%. Even though double digit growth is something of the past, China's economy is expected to continue growing at rates somewhere in between 7-10%. In pace with overall economic growth, disposable per household income will also continue to increase. As car ownership ranks number one on the wish list of most of China's increasingly affluent consumers, car sales are projected to increase for years to come. Given these prospects, the Dutch automotive sector cannot afford to neglect the Chinese market.
