Tier-3, 4 cities to drive auto market recovery

The surge in car sales in third- and fourth-tier cities may pump up China's auto sales growth back to 10 percent year-on-year, Beijing Morning Post reported Tuesday citing Xu Changming, director of Information Resource Department of State Information Center.

Third- and fourth-tier cities accounted for 30 percent of new car deals in China in 2012, a rise from the 26.7 percent in 2011. The auto market in these cities, typically dominated by Chinese brands, are expected to see more joint venture and international brands nudging in.

Su Bo, vice-minister of Industry and Information Technology, said that third- and fourth-tier cities and rural areas will fuel a stable growth in the Chinese car market in the following ten years. However, an explosive growth is not likely to take place.

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