China's investment in auto industry reached 100 billion yuan (about US$12.4 billion) last year, the latest statistics released by the People's Bank of China show.

 

China's auto manufacturing has increased by an annual rise of one million units from 2000 to 2005, according to the statistics. Last year, auto manufacturing capacity leaped to about 6.2 million units from less than 150,000 units in 1978.

 

Investment in the sector has also climbed by over 40 percent in the past four years, reaching 100 billion yuan in 2005, double that of 2002.

 

The statistics show that the number of auto manufacturers amounts to 200, distributing in 27 of the country's 31 provinces, autonomous regions and municipalities. After experiencing the flying increase from 2001 to 2003, auto sales witnessed a sharp decrease in profit rises, with the increasing rate down from 45.7 percent in 2003 to 8 percent in 2005.

 

Due to high oil price and guide of the country's policy, the market share of environment-friendly autos with low emission has kept climbing, the statistics show.

 

The auto industry will continue to benefit from the country's booming economy and supporting policies, the bank's report said, noting that improving the competitive capacity of manufacturers, streamlining the output structure and boosting manufacturing of energy-saving cars will be vital to the industry's future development.

 

(Xinhua News Agency February 23, 2006)