^^^ This is awesome news! But, a noted pakistan school of economics professor from Harvard was making a point that Petrol/Diesel consumption has stayed flat or dropped and not in proportion with the car sales. What is your thought on that. I am pretty sure the professor was jealous of progress made by china.
NY times happened to have another article published to answer your question.http://www.nytimes.com/2009/12/10/busin ... iracy.html
A Land Where Car Sales Leap, but Gasoline Sales Stay Flat
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By KEITH BRADSHER
Published: December 9, 2009
GUANGZHOU, China — Auto sales are so strong in China that an unusual conspiracy theory has circulated on Western stock markets this month: the Chinese government must be secretly buying hundreds of thousands of cars and parking them somewhere.
The main evidence presented for the theory is that the number of gallons of gasoline consumed in China has been flat this year. But auto executives and Chinese buyers deny the rumor, which has spread so widely that economists have begun producing reports on why it is implausible.
Kevin Wale, the president of General Motors China, said that automakers knew who was buying their cars and saw no evidence of a car-buying conspiracy. Sharp improvements in fuel economy — partly because of government mandates and partly because of a shift to smaller cars — help explain the slow growth in gasoline sales, he said.
A series of recent increases in regulated fuel prices may have also discouraged some driving, he added.
In interviews over the last three weeks in Kunming in southwestern China, in Nantong in east-central China and here in Guangzhou in southeastern China, residents complained of cars being sold out at dealerships because many people wanted to buy as incomes rose, loans became available and extensive new highways opened.
Li Qi, a 45-year-old lumber dealer who already owns a 40-inch flat-panel television and a BMW 325i sedan, sat at a table near the end of the long row of dealerships in Guangzhou on a recent afternoon and disconsolately peeled an egg that had been hard-boiled in tea. He complained of missing his chance to buy a Land Rover S.U.V. when he saw several in a dealership last month.
“I wanted to think about it, and now they are gone,” he said, adding that he had just put his name on a monthlong waiting list.
Nissan has a waiting list of two to three months in China for its Teana midsize car, which is similar in size to the Altima sold in the United States, but it is costlier and comes with more standard equipment in China, like computer navigation aids.
Nissan produces the car in China for the Chinese market. The company cannot import the Teana manufactured at its factory in Japan because the technical specifications are slightly different for the Japanese market and because China still has steep tariffs on imported cars, said Kimiyasu Nakamura, the chief executive and president of the Dongfeng Motor Company, a Nissan joint venture in China.
But rising auto sales do not translate directly into rising gasoline consumption.
Stephen Green, an economist in the Shanghai office of Standard Chartered, calculated that the number of registered cars in China would rise 24 percent this year, a little more than half the growth rate in sales. Older, less fuel-efficient cars are being retired and replaced with fuel-sipping models, he said in a report on Nov. 16.
Light industry accounts for 40 percent of gasoline consumption in China and has slowed because of global economic difficulties, while commercial light trucks are also big users of gasoline and are probably being driven fewer miles because of weaker demands for freight movements, he wrote.
J.D. Power & Associates expects the United States to regain the annual lead in number of cars and light trucks from 2012 through 2014 as the American economy recovers from the downturn. J.D. Power also predicts that China will move ahead for keeps in 2015 because it has four times as many people as the United States.