Chinese car market overtakes that of US

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SHANGHAI, Dec 11 (AP): China has overtaken the US as the world's biggest market for automobiles, the first time any other country has bought more vehicles than the nation that produced Henry Ford, the Cadillac and the minivan.
Now that the Chinese buy more cars and trucks than Americans, the shift could produce ripples for the environment, gas prices and even the kinds of cars automakers design.
More than 12.7 million cars and trucks will be sold in China this year, up 44 per cent from the previous year and surpassing the 10.3 million forecast in the US, according to J.D. Power and Associates.
China has long been expected to overtake the US since its population of 1.3 billion is more than quadruple that of the United States. But the increase in sales happened much faster than anyone expected because of China's tax cuts, its stimulus programme and a depressed American market.
After a sharp slowdown in auto sales late last year, the Chinese government cut taxes on small cars and spent $730 million on subsidies to encourage sales of SUVs, pickups and minivans. A big stimulus programme also boosted truck sales by pumping money into construction.