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02 10 2017 04

Euler Hermes has released its annual automotive industry report, including an assessment of the world’s top eight automotive countries.

China: new technologies, old challenges

The world’s largest auto market is forecast to expand by +2% in 2017 and +3.2% in 2018.

By 2019, more than 30 million vehicles are expected to be sold each year in China. Despite slowing growth from tax hikes on pollutant emissions and the lifting of used-car trading restrictions in January 2017, new sales are expected to grow at a moderate pace due to demand in smaller cities and rural areas.

The emerging used-car market in China is forecast to double to 24 million vehicles in 2020 – which could dent new car sales in the medium-term. While leading the way with the world’s largest electric vehicle fleet, consumer demand is supported by a generous 23% government subsidy.

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