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News release

Detroit

Chinese Auto Ownership Set for Massive Growth, Say Experts


DETROIT, November 30, 2009 — The Chinese automotive market is on a path towards exponential growth, creating opportunity for Detroit-based automakers, said speakers at the China-U.S. Auto Summit event hosted by commercial real estate firm Jones Lang LaSalle.  Peter Mok, CEO of Plainvim International Ltd, a Chinese industrial development company concentrating on China’s automotive industry, predicted that car sales are set to soar to 50 million units by 2020, up 316 percent from 12 million in 2009 with an annual average increase of 11.5 percent. 
 
The event in Detroit brought together U.S. automotive suppliers and manufacturers to gain insight into China’s rapidly expanding auto industry.  It highlighted the tremendous potential for U.S. auto firms to grab a foothold in this rapidly expanding and lucrative market.
 
Xue Zhong Miao, CEO of China-based Zhejing GoNow Auto Inc., explained that while worldwide car ownership currently stands at 8 people per car, and as high as 1.5 people per car in the U.S., in China, with a population of 1.3 billion, the average is a mere 26.3 people per car. This underscores the enormous potential for car manufacturers and suppliers. Miao, whose firm produces SUVs and pickup trucks has seen 50 percent growth in sales this year, and is targeting the rural demand for minivans, another lucrative market of 900 million potential buyers.
 
“The growth of car ownership in China presents such huge potential for U.S. automakers and manufacturers,” said Craig Meyer, head of Industrial at Jones Lang LaSalle.  “Many U.S. firms are looking to partner with Chinese companies or enter the China market for a mutually beneficial exchange.  It is a global market and U.S. firms realize that they have to be global players in order to succeed.”
 
Signature speaker Steve Forbes, Chairman and CEO of Forbes Media and Editor-in-Chief of Forbes magazine highlighted how China’s economy has emerged virtually unscathed from this year’s turbulent economic climate, thanks in part to the government’s stimulus package.  He also went on to discuss the emerging and highly lucrative middle class and how younger Chinese in particular are heading toward a consumer-driven mindset. For example, Forbes said, credit card users in China have jumped from 13 million in 2005 to 175 million in 2009.
 
About the event sponsor: Plainvim International Ltd.
 
Plainvim International Limited is an investment company specializing in industrial real-estate projects in China.  Plainvim is engaged in industrial real estate development, electronics production, project investment, project collaboration, project consultation, equity investment and other businesses. Plainvim’s investment in China covers the three major economic engines of Mainland China’s economy: the Tianjin region, the Shanghai region, and the Guangzhou, Dongguan, Shenzhen region including the investment, development and operations of more than 3 million square meters of automobile industry supplier parks. Plainvim has a strategic alliance with the Guangdong and Jiangsu Provincial Governments and other government agencies.
 
About Jones Lang LaSalle
 
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.4 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $37 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.
 
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