In 2009, China's auto market experienced an explosive growth. In the first eleven months, both of China's auto output and sales volume have exceeded 12.2 million sets. Influenced by the international financial crisis, such a "beautiful scene" is hard-won and it cannot do without the policy support from the government.

In 2009, China's auto industry witnessed a rapid growth, which has played an active role in the stabilization and recovery of China's economy. Meanwhile, the rapid growth of auto output and sales volume has also brought pressure to enterprises' capacity and urban traffic. What's more, the influence of international financial crisis has not elapsed and China's economic development is still faced with challenges. In order to make the economy developed stably and rapidly, what still needs to be done is to insist on expanding domestic demand, especially to boost consumption's driving force to economic growth. As to the auto industry, being as a pivot industry of national economy, the development of which is still followed with lots of indefinite factors in the future. How to make the industry developed from big to powerful and realize a sustainable, health and stable development is still a problem worth thinking about.

The executive meeting of the State Council, which was held on December, 9, 2009, issued the policies on encouraging auto consumption in 2010. Such policies as preferential tax on buying autos, autos going to the countryside and old for new will be continued in 2010. The preferential margin of the tax on buying autos will be decreased while the subsidy degree of "old for new" policy will be increased. These incentive policies have delivered an important signal that China's auto market is expected to be developed stably in 2010. These incentive policies have also embodied the long-run consideration of Chinese government to the health development of the auto industry.

The preferential policies for the tax on buying those autos with small emission are the focus that automakers and consumers pay attention to. The fact that the preferential margin is not be cancelled but only be lowered and will be prolonged to the end of 2010 can illustrate Chinese government's support on developing energy-saving and environmental-friendly autos with small emission. And the autos with small emission are the major types of self-owned brands, so the continuity of the policy will also make self-owned auto manufacturers continue to attach great importance to improving the quality and service of those autos with small emission in the new year, so as to obtain more recognition from consumers.

Industrial experts believe that China's auto market will not only seek for improving quantity in 2010. It will be a highlight in 2010 that to do well in the effort of autos going to the countryside and make breakthrough in the policy of 'old for new' of autos.

The rural auto market is a "blue sea" waiting for the further exploitation and will have huge potential in the future several years. However, as far as the current rural auto market is concerned, firstly, there are relatively less auto products that can meet the demand of peasants and adapt to the traffic condition in rural area; secondly, the after service is inconvenient. Although many enterprises have started to develop products targeting rural auto market and to layout the networks of marketing and service, it is still very difficult for auto enterprises to explore rural auto market and there are many works to do, because, after all, the rural auto market is wide in area coverage and dispersive in distribution. If the policy named "autos going to the countryside" is prolonged, enterprises can do better on perfecting their products and networks, so as to facilitate the consumption and drive the economic growth; at the same time, the peasants will get real benefits, too.

What's more, the activity of "old for new" has gained certain achievement in the auto industry in 2009. The policy of the government that "to increase the subsidy standard on single auto participating in the 'old for new' policy from RMB5,000 yuan to RMB18,000 yuan" will expedite to eliminate those old auto types with high energy consumption and heavy pollution, and promote the consumption on new autos, which will not only be propitious to the efforts of China on further reinforcing energy saving and emission reduction, but also be another positive factor for the stable growth of China's auto market in 2010.