According to the statistics of major industries from National Development and Reform Commission, China automobile industry still maintains rapid growth during the first three quarters of 2006. During this period, China automobile industry achieved an overall profit of RMB 52.9 billion, up by 47.5% over the same period of 2005. China automobile industry has become one of the industries with highest growth rate in China.

During the first three quarters of 2006, the production and sales of China automobile industry developed very well. In particular, passenger vehicle generated a dramatic increase and commercial vehicle also got out of the ebb. Up to the end of September, the production and sales of China automobile industry reached 5.28 million units and 5.17 million units respectively, up by 26% and 25% separately over the same period of last year, among which the production and sales of the passenger vehicle was 3.78 million units and 3.68 million units separately, up by 33% and 31% year on year, and that of commercial vehicle was 1.5 million units and 1.49 million units with a year-on-year growth of 11% and 12% respectively.

The rapid development of automobile industry spurs the boom of car engine market. Currently, the engine used for passenger vehicle and commercial vehicle is quite different: the passenger vehicle is mainly equipped with the gasoline engine, whereas the commercial vehicle, especially the medium and large ones, mainly depends on diesel engines. The production gap between cars and engines are gradually widening, which is from 80,000 units in 1998 to nearly 1 million units in 2005 for most of joint-venture automobile manufacturers prefer the imported engines. During Jan-Jul of 2006, China automobile production reached 4.1335 million units, which were 500,000 units more than that of engines.

China Automobile Motor Output, 1998-2006

In the first half year of 2006, due to the rocketing of passenger vehicles, the production and sales of the gasoline engine grew rapidly, up by 4.78% and 4.44% respectively against the total production and sales of the car engines. As a result of the dramatic drop of heavy-duty truck and medium truck in terms of production and sales, plus the slack growth of the semi-trailer and incomplete vehicle, the diesel engine production and sales increased only by 13.45% and 14.8% respectively, which was lower than the growth rate of 21.31% and 19.92% in production and sales of car engines. As for the production ratio change of diesel engine and gasoline engine during Jan-Jul of 2006, diesel engine remained its share within 30% of the total but gasoline engine shared 70% plus in June. All this fluctuations were closely bound up to the change in production and sales of commercial vehicles and passenger vehicles.

The report data sourced from National Bureau of Statistics, National Development and Reform Commission, China Automobile Industry Association and financial reports of related enterprises. The report highlights the market environments, production & sales and major manufacturers of China automobile motor industry, and probes into the development trend of China diesel engine and gasoline engine industry.