China overtook Japan as the world’s second largest auto consumer next to the United States in 2006 with a sale increasing 25.1% every year to 7.2 million units. And exceed Germany to become the third largest auto maker next to United States and Japan with an automobile production increasing every year to 27.6% to 7.3 million units. With the auto shows made in Beijing, Shanghai and Guangzhou are drawing a lot of attention. The Beijing Auto show is now a major or main industry event. In April 2010 at the Beijing Motor Show it has more than 2,100 automakers and auto parts companies from 16 countries that joined. A total of 990 vehicles were displayed that also include 89 debut cars. Because of the show it attracted more than 100 Chinese and foreign automakers.

Because of the fast growing economy of China, the dispose income of their citizens has remain an upward trend for years that contribute to the increasing number of people having their own private automobile. China is encouraging the automakers to develop automobiles that are environmentally friendly and low energy consumption vehicles to maintain a sustainable economic development. And now there are more manufacturing automobile companies that are joining the league to develop and make hybrid cars with lower battery cost and a higher capacity. It is also expected that as the incomes increases in China the high annual growth rate of private ownership is also expected to increase. Some analyst predict that China has so much investment money that is going into automobile industry that could have a capacity to make over 31 million vehicles a year by 2015 that could make a serious overcapacity of automobiles and inability of infrastructure to keep pace.