Motor Vehicles in China: The Impact of Demographic and Economic Changes

While China's transportation sector is relatively small compared to other nations—both in absolute terms and relative to the size of the population—the nation is currently experiencing one of the highest annual motorization growth rates in the world. This rapid growth has raised both excitement among business leaders over the potentially enormous market for automobiles and concern among environmentalists over their further impact on the global environment. This paper examines the influence of population growth, increased urbanization, and economic development on the rapid growth of motor vehicles in China, and considers their implications for future motor vehicle growth in the country.