Smaller Cars for China

Before the current gas crisis, driving an expensive, large American sedan was a sign of prestige in the PRC. With the crunch China placed on the world oil supply, citizens will shift towards smaller, fuel-efficient cars, a trend the rest of the world follows. These smaller cars mean slimmer profits for carmakers. China became the second largest auto market in 2006. Residents owned 8.8 million vehicles last year, with more to come; auto growth is still in the double digits, unlike American and European growth. Surprisingly, the rate of car ownership is only 44 in 1,000. Chinese auto manufacturers, despite bland designs, hope to go international soon.