Auto has been a high growth industry in China for years along with China‘s GDP. But now, the GDP growth starts to slow down and investors may have a question: can the auto industry, with around 100 listed companies in China, sustain such high growth in the future? So we did some research on our Research Platform to compare auto sales and penetration of China to other markets.
For the graphs above, we can see that only 83 cars were owned by 1000 people in China compared with World's average 158 and 376 in Korea. If China could catch up with the world's average in the following years with a growing middle class, it will need to almost double its vehicle ownership and therefore a prosperous auto market growth is possible.