The auto industry is running high

Recently, the China Association of Automobile Manufacturers and the China National Economic Statistics Monitoring Center of the National Bureau of Statistics jointly released the “China Automotive Industry Climate Index” for the first quarter of 2011. In the first quarter of 2011, the automotive industry sentiment index was 102.2, which was a decrease of 1.0 points compared with the previous quarter, indicating that the auto industry has finished high and entered a steady growth.

The automobile industry early warning index is an important index used to reflect the operating status of the automotive industry. The early warning index for the automotive industry in the first quarter of 2011 was 106.7 points, which was 13.3 points lower than that in the previous quarter. It entered the “green light area” from the “yellow light area”, that is, it fell back to the normal range from the hot area.

The Entrepreneurial Confidence Index reflects the satisfaction of the auto manufacturers with the existing market and the integration of the market expectations for the future. In the first quarter of 2011, the automotive industry's entrepreneur confidence index was 98.8, which was a decrease of 9.2 points from the previous quarter. It fell below the critical value of 100, indicating that entrepreneurs are not optimistic about the future of the auto industry.

However, in the medium to long term, there is a huge potential for automotive market demand. The Chinese auto market is in a period of rapid growth from a population of 20 to 100, and automobile consumption has entered a period of rapid adoption. According to the experience of developed countries, the auto industry needs at least 10 years of growth.

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