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China to become second largest auto market
(People's Daily Online)
Updated: 2005-01-10 15:14

Satinet Claude, general manger of the French Citroen Automobile, said Saturday despite the fact that China's auto market in 2004 was not as good as it had been two years ago he still believed that China would become the second largest auto market in the long run.

Satinet said while releasing the company's annual report Citroen produced 78,000 cars in 2004 in cooperation with China whilst the production in 2003 was 104,000. The reason of the reduction was that the China auto market experienced sharp demand decrease after "blowout" in recent years. In addition, too many newcomers joined the competition, which led to fierce price cuts. To guarantee the value of its brand Citroen voluntarily limited its production.

Satinet said although China's auto market entered an adjustment period from the short-term point of view, in the long run, that is, in the foreseeable ten years, it would become the second largest auto market in the world. He believed after sometime China's auto market would complete restructuring and its growth would be steady and strong.

Citroen's official in charge of China affairs said to the reporter that those who felt most pressured in China's auto market in 2004 were foreign companies that entered China long ago. He said China's new regulations on auto industry would boost the healthy competition in the auto market. He was confident of the future of China's auto market.

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