The Jaw-Dropping Growth in Chinese Car Sales
That’s the takeaway from reports that vehicle sales in China continue to grow unabated and are north of 27 million units in the first quarter 2017. By comparison, the U.S. is the second-largest new car market in the world and purchased 17.5 million new cars last year. Additionally, the new purchases are coming from a relatively low base of existing vehicles in circulation, with car owners purchasing cars for the first time. This means nearly every new car purchased is adding a new car to China’s roads. All of this points more crude oil demand coming out of East Asia in the coming years.