Aug. 20 – China’s Western and Central inland regions have reported a surge in auto sales with growth of 33 percent for the first half year over 2008 figures, according to a report from the global market research firm, Ipsos. The industry average for China this year has been 24 percent.

More than 2.73 million new license plates were issued in China in the first five months of the year, with Shaanxi, Gansu, Ningxia, Heilongjiang, Jiangxi and Sichuan all contributing 35 percent to national growth. Shaanxi reported a growth of 110 percent in issuing license plates, compared to a 12 percent drop in Guangdong.

China Daily reported that car dealers in Sichuan had to delay deliveries by up to three months for some car models because of demand. It has generally been accepted that China’s Central and Western regions have not been affected by the global downturn because these areas are not as linked to the global export economy as Shanghai, Zhejiang or Guangdong.

Government policies of promoting the use of smaller 1.6 liter vehicles  have proved popular in the region. The governments stimulus plan, implemented earlier in the year, also contained provisions and incentives to assist agricultural and other industries upgrade certain vehicles.

The government’s long-term strategy of balancing the economies of the wealthy Eastern areas of China with the historically less well off inland and western regions are paying off. Disposable income rates in these areas are now higher than the national average.

Further Reading

China’s Northern And Inland Provinces Recession Free

Chongqing To Build Inland Free Trade Area

China Briefing’s Regional Guide To West China:This book is a detailed overview of West China, including the Provinces of Gansu, Guizhou, Ningxia, Shaanxi, Sichuan, Tibet, Xinjiang and Yunnan, and includes detailed introductions to the key cities of Chengu, Chongqing, Kashgar, Kunming, Lanzhou, Lhasa, Guiyang, Urumqi, Xining and Yinchaun.

China Briefing’s Regional Guide To Central China:This book is a detailed overview of Central China, including the Provinces of Hebei, Henan, Hubei, Inner Mongolia, Jiangxi and Shanxi, and includes detailed introductions to the key cities of Changsha, Hohhot, Nanchang, Taiyuan, Wuhan and Zhengzhou.