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China"s auto market will grow at a slower pace next year after expanding almost 40 percent in 2009 to become the world"s biggest, said Shiping Tong, chief executive officer of China Auto Logistics Inc.
This year"s forecast for 12 million cars sold in China from around 8.8 million in 2008 is a "very one-time event," Tong said in an interview in New York. China"s sales were suppressed last year by the global economic slowdown, he said in an interview in New York.
China Auto, an importer of foreign cars and operator of automobile Web sites, has risen sevenfold since it started trading in New York in October 2008. The shares advanced 1.6 percent to $5.89 in Nasdaq Stock Market trading today.
Chinese auto sales will be bolstered this year by the nation"s economic recovery and government stimulus spending.
China is yet to say whether it will extend into 2010 auto tax cuts and subsidies. The State Information Center, a government advisory body, is trying to persuade policy makers to extend stimulus measures, Xu Changming, a research director, said last month. The support may help this year"s sales jump to 12 million vehicles, according to the government. That"s likely enough to surpass the U.S. as the world"s largest auto market.
"Government stimulus spending will be maintained at a high level," Tong said.
The Tianjin, China-based company expects to quadruple its domestic auto Web sites by the end of 2011. With the expansion, China Auto will cover up to 75 percent of China"s car market, Tong said. The Web sites link potential buyers with sellers and also provide financing and insurance services.