Chinese Car

Now there are too many cars in China so now they are putting the road taxes back in place for anyone who purchases a vehicle. And let's not forget there is a big difference between three cylinder vehicles and the big eight cylinder vehicles and SUVs that we drive here the United States.
Nevertheless, my acquaintance's point is well taken; that China is selling just as many cars or more than the United States each year, and those numbers will probably increase, thus even if each car uses a lot less fuel, all those cars are adding up and increasing the demand for more oil. If you are a member of the Chinese Middle Class (460 million people making over $1200 per year) it is significant, and realize that most Chinese save and buy their cars for cash.
Now then, realize that China is not the only nation that is selling lots of cars and using more oil. In Vietnam they've sold so many cars that they don't have enough roads to drive all the vehicles on and now there are in constant traffic jams with scooters and motorized bicycles riding between all the cars stuck in traffic.
Some say that the Chinese car market is sputtering, but that's only temporary due to inflation, and the increased road taxes, and the number of roads available to drive on in the big cities and surrounding the large towns. Everyone involved in China's car market now knows about the restrictions in Beijing regarding the registration of new vehicles. To combat this BYD have announced a series of price cutting measures on their F series cars, cutting up to 15,000 RMB off the sales tag of each model in the range. It was another record breaking year for China's auto industry with an absolutely stunning final sales total of 20 million new cars sold in the country in 2011. This gave them a substantial 9% of the personal vehicle market after only 9 years of operation in China. What has gotten the attention of many car buffs is the very low prices at which each model will be sold. If Chinese cars do arrive as expected, look for a massive change in the way entry level model cars are built and sold in the U.S. and Canada. The Chevrolet Aveo, a compact car built by GM's Korean unit, Daewoo, is currently the lowest priced car sold in the U.S. retailing for as low as $9300 after all discounts have been applied [MSRP is currently set at $9890 for the "Special Value" models]. Beyond that, the car is truly stripped.
Selling 2007 model year cars, both the Geely Automobile Company and the Chery Automobile Company are working with U.S. representatives to build nationwide dealer networks. Geely has similarly priced cars that they plan on marketing too.
Naturally, the quality of Chinese cars may be a big concern. By dropping their prices accordingly. Long term, prices across the board for all vehicles may begin to drop, especially as Chinese manufacturers start to market vehicles that are larger and better equipped than base models. Mentioned earlier was a vehicle in the $20,000 range. Toyota, Honda, Nissan, and Hyundai all build cars here.