Released on = June 10, 2007, 10:25 pm

Press Release Author = Shushmul Maheshwari

Industry = Automotive

Press Release Summary = Passenger cars industry, a booming sector in China, is set
to witness healthy growth this year as well.

Press Release Body = As per a recent report “Passenger Car Market: A Global
Review (2006)\", published by RNCOS, it has been found that boom in the demand for
passenger cars in China has attracted more and more overseas players to venture
their capital in this segment. Consequently, foreign carmakers have declared that
they would invest US$15 Billion in this sector by the next year (2008). This will
impel car registration in China, which is expected to grow at a CAGR value of 13.82%
during 2007-2010 to reach 6712, 000 units.

Outstripping Japan, China became the second largest consumer of vehicles globally
during the year 2006. Booming sales in consumer vehicles remained the key factor
behind this remarkable growth. The country is expected to retain its position in
this year (2007) as well. Sales of commercial vehicles and passenger cars are
expected to increase 7.8% and 22%, respectively, and touch 2.20 million and 6.30
million, as per Frost & Sullivan research. Chinese vehicles market will likely roll
out about 8.5 million unit vehicles this year, 15% up from last year.

High GDP has been playing a significant role in making private cars a fast emerging
necessity among the Chinese population. Active participation of the govt. to help
the market further flourish has become evident as it declared reduced tariff on
imported cars. This move is expected to allow overseas players to cut down their
cars’ prices and increase their competitiveness in domestic market. In the
meantime, new regulations on the qualification-evaluation of car-dealership will
surely help in eliminating the car-dealers that don’t have authentic
authorization, thereby encouraging fair competition in the market.

Leading enterprises & integration remain the prominent themes of interest in the
auto-parts industry. Through several years of expansion and growth, auto-parts
industry in China is improving its position. There’s been a notable
improvement in the manufacturing level of this industry.

Conversely, industry competition anxieties have resulted in increased demand for
capital and integration. Existing parts-makers want to expand and become more
competitive, whereas new comers in this market want to grow into bigger players.

As per the RNCOS report “Passenger Car Market: A Global Review (2006)”,
“Apart from Chinese consumers’ higher incomes, slashing prices and easy
availability of car financing deals remain the key influencers for the car purchases
in the country. This offers immense growth opportunities for overseas players in
this country.”

This research reports on “Passenger Car Market: A Global Review (2006)”
attempts to answer various key questions, including: how attractive is the passenger
car industry for investors, who are the key competitors in the global passenger car
industry, and so on.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM071.htm
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Web Site = http://www.rncos.com

Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com