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Auto Industry In China To Slow Down

The Asian country of China has been known to be a sleeping giant. However, it looks like the present state of the country is actually showing the world signs that the sleeping giant is already starting to stir and wake up. In the process, it would soon be considered as one of the largest manufacturers and powers in the entire world.

The country is known not only for its low cost labor but also for the products that it can actually send out to the world market and this does include vehicles and automotive parts. The entire automotive industry has been on the lookout for the Chinese entrants for they actually do know what kind of products the country could bring. However, it does seem like the country itself has already started to put a damper on things and would be putting a slow down sign for the Chinese auto makers. Although if you are a Mazda fanatic and you are on the lookout for those auto parts Mazda Navajo, you need not worry for Mazda products are primarily based in Japan, and not China.

Anyhow, this report has been given out by Reuters and the report does continue to say that such a damper has been brought about because the Chinese auto industry has quite gone into rapid development. If this does continue to happen, the mentioned industry could have overproduction problems in the near future. Even the country’s National Development and Reform Commission was reported to have said, “Signs of overcapacity have already appeared, and could worsen.” The NDRC is China’s top economic planner.

At present, it has been noted that China is currently the second largest in the world when it comes to production of automobiles and of auto products. Compared to a year earlier, the current year recorded an increase of twenty five per cent which equates to 6.45 million vehicles produced and this does not yet include the month of December.

A statement given out by the NDRC said that they would be asking auto companies in China to actually hit a given target when it comes to sales. The downside would be that if these companies do not hit the target. The commission could actually close the businesses down.

About the Author: Kimberly Meyer is an expert when it comes to automotive issues. She is the manager of her own car parts manufacturing company. This 33 year-old maiden is also a talented writer.

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