The automotive sector is one of the core industries in the Chinese economy. First time in automobile history China has evolved to the second largest automobile market worldwide with 7,2 million vehicles sold in 2006 – compared to 5,8 million in the previous year. China's total vehicle sales for the first half of the year rose 17.7 percent to 6.1 million units, and the full-year sales in 2009 are expected to exceed 11 million, an increase of over 17.3 percent from 9.38 million sold in 2008 as stated by the China Association of Automotive Manufacturers (CAAM). China is expected to become the largest auto manufacturing and consuming country very soon. As one of the most important emerging markets, China has been proved to be the most dynamic market in the world.

Especially sales of small and medium sized passenger cars are booming, due to a growing demand from the so-called second and third tier cities. And there is even more potential for the future as the average car density per thousand inhabitants in China is still a mere twelve units.
In the past few years the international supplier industry has positioned itself well in China as a result of being technology leaders. Similar components and parts produced by Chinese manufacturers are low priced but often show critical quality defects. Future business opportunities arise from increasingly strict environment and safety regulations in China.