China is currently the world's second largest market for passenger cars, so far the United States is no 1.
However, the future looks bright for China due to the population of 1.3 billion people. Only a few percent own a car at the moment but there will be a great potential for most carmakers.
Honda is a brand that already is planning its second factory in China which will be ready for production in 2012. The new factory will have a clear environmental profile and will be their first car factory where the energy will be generated from solar cells. This will significantly reduce emissions of carbon dioxide in the manufacturing phase.
However, it's not just international companies that invest for a better future. In late 2009, the Chinese Government announced that they intend to make China a world leader in electric vehicles, which is understandable since China has large reserves of lithium, which is necessary for the batteries. It is clear that the Chinese automotive industry develop smaller and more energy efficient vehicles, and the sight is set to expand to the U.S. market.
In other words, the Chinese automotive industry aims for a dynamic future development and growth. Many new Chinese car factories are being built outside the borders and several acquisitions have been completed.
Cecilia Helland