Chinese auto industry is experiencing low demand

Chinese auto industry stood like a Great Wall in the international auto industry, and after registering an exceptional growth of 30 per cent for the last decade, it seems the wall is shaking now. Yes it is true that the Chinese auto market is experiencing low sales figures in the auto mobile sector. It accounts to many factors some of them are Government regulations and restrictions, all time higher interest rates, increasing fuel cost and many more are contributing to the low demand for the automobile.

It was being known that in Beijing (the capital of China) to restrict the sale of the auto mobiles, the government will only allow 240,000 licence plates for 2011 (nearly 20,000 auto mobiles in every month). In January, 210,000 residents of Beijing applied for the licence plates but only 17,600 were issued the licence.

In China a total of 18 million auto motives were rolled out. Due to increasing auto mobiles on road the government was worried for the high levels of pollutions in cities such as Shanghai and Beijing. As per WHO, Beijing's living conditions have been hampered greatly due to automotive pollution. Due to the increasing concern of the living standards the Beijing government is planning to greatly reduce the number of licence.

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