As automobile production increases, output target figures are expected to shrink.

(File Photo/Xinhua) With China becoming the world's largest market for automobile manufacturing and sales during its 11th five-year economic development plan (2006-2010), the auto industry expansion program included in the 12th five-year plan (2011-2015) is likely to be scrapped, according to China Economic Weekly. The publication also said that the Ministry of Industry and Information Technology is now striving to curb further rapid increases in vehicle production. Some industry experts have reportedly said auto manufacturers should heed warnings of a possible slide in sales in the domestic market because of the introduction of multiple measures to contain auto production, such as restrictions on car purchases and raising the prices of license plates, as well as soaring oil prices. Dong Yang, secretary general of the China Association of Automobile Manufacturers, said that with sales of vehicles lower than expected in the first quarter, growth in auto production and sales for the whole year is likely to be lower than the earlier forecast of 10-15 percent, according to the weekly report. Dong attributed the slowdown in China's auto market mainly to a phasing out of the government's auto consumption stimulus measures over the past two years. China's car market experienced rapid growth during the 11th five-year plan period but has shown signs of slowing down since the 12th five-year plan began this year, mainly because of the withdrawal of stimulus measures and plans drawn by the government and industry aimed at preventing problems of traffic congestion with too many cars on the country's roads. particularly in urban centers. At an international auto show in Shanghai, Su Bo, vice minister of the Ministry of Industry and Information Technology, recently said that in 2010, China's car production and sales topped 18 million units, representing an average growth rate of 25 percent annually, the

highest rate of growth in the global auto industry for the second consecutive year. He also described the rapid development of China's car market over the past ten years as "unprecedented." According to statistics, China's car production reached 2.07 million vehicles in 2000, and 5.71 million in 2005 -- a hefty 176 percent increase. Even during the 11th five-year plan period, production continued to be buoyant. The average growth rate climbed to 8.3 percent and 23.4 percent in 2009 and 2010, respectively. By 2010, China's car production accounted for 23.5 percent of the world's total car output, making it the world's largest market for auto sales and manufacturing. However, in September 2010, the National Development and Reform Commission warned there was a possibility of an oversupply of cars. Similarly, Su also predicted that the car market would not witness the explosive growth of the past ten years in the future. However, several major domestic auto manufacturers have doubled their targets for vehicle production by 2015. If those goals are met, auto sales could soar to 40 million vehicles in the same period. That figure is three times the lower limit set by the government for the growth of the auto market. Not surprisingly, the government faces a dilemma: while it wants to boost auto production, it has to take into account the ability of cities and their infrastructure to handle more cars on the roads. This is also possibly the main reason for the government aborting plans to expand the auto industry further under the 12th five-year plan.