China showcases global muscle at auto show

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SHANGHAI, Apr 17 (AFP): The world's top car makers head to China this week for the Shanghai Auto Show, where they hope to cash in as the sector reels from last month's earthquake and tsunami in Japan. After two years of booming sales, the growth in China's auto market-which in 2009 overtook that of the United States to become the world's largest-tapered off to eight per cent year- on-year in the first quarter of 2011. That slowdown-which still meant the sale of 4.98 million units-comes as Beijing winds back stimulus measures put in place to combat the global financial crisis and curbs the number of licence plates issued in the capital. But analysts remain bullish about the market's prospects, as the number of car owners is still relatively small compared with the country's massive population of more than 1.3 billion. "The centre of gravity for activity is clearly moving towards China," Patrick Blain, president of the International Organisation of Motor Vehicle Manufacturers, told AFP earlier this month. "One advantage that China has is its centralised economy," said Carlos da Silva, a Paris-based analyst for Global Insight. "The periods of slowdown are also due to the government's wish to avoid overheating," he said. The show, which opens Tuesday to the press, covers 230,000 square metres (2.5 million square feet) of exhibition space in Shanghai's Pudong high-tech district, 35 per cent more than for the show two years ago, organisers said. About 2,000 car and parts makers from 20 countries will hawk their wares-showcasing 75 new models, 19 of them making their world premieres. A total of 1,100 vehicles will be on display. Organisers are expecting 700,000 people to visit the show during the six days that it is open to the public, from April 23- 28. As the first auto show since the March 11 twin disasters in Japan, where a large number of auto components are made, Shanghai will also allow industry heavyweights and analysts to gauge the impact of the catastrophe on the sector.