China overtakes the United States as the world's largest auto market in January 2009.
According to Chinese state media, a total of 735,000 automobiles were sold in China last month whereas in United States only 656,976 vehicles were sold. The sales figure of the U.S. is revealed by a market research firm Autodata.
Commenting on the comparatively high auto sales in China, various analysts and researchers said that in China Lunar New Year boosts sales in January whereas U.S. saw a post-Christmas sales drop.
A Shanghai-based analyst, Michael Dunne, with J.D. Power Asia said, “China had a strong month and the U.S. probably had its worst month in a long time.” He also added, “We're still holding to our forecast that China won't surpass the U.S. this year.”
Researchers and analysts also reported that over 80 to 90% of the car sales in United States was supported by finance. Once the economy felt down and there was a severe financial crunch in the market, the entire sales model supported by the financial system collapsed.
The U.S. car market is further expected to regain its position as the world's largest car market.