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From Bicycle Kingdom to Biggest Private Car Market

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For many Chinese families, especially those in cities, owning a car is no longer just a dream. The purchasing power of Chinese households has made the country one of the most profitable auto markets today - there is now one privately-owned car for every five Beijing citizens, and the number of cars on China's roads is still growing. But even those who now own a car, or even two, can remember when just buying a bicycle was a distant dream.

The '50s to '70s: "Forever" and "Phoenix" Bicycles are Signs of Luxury

 

Bicycles are signs of fashion and luxury between the '50s and '70s. [File Photo] 

Talk of luxury usually includes world-famous automobiles like BMWs and Benzes. In China between the '50s and '70s, "Forever" and "Phoenix" brand bicycles were the counterparts of these luxury cars. Even today, many Chinese can easily recall the famous "big four pieces" for every household - a bicycle, sewing machine, radio and watch - signs of luxury at a time when people's daily needs often went unmet in China.

The love of bicycles was largely due to the poor transportation services at the time. Even in big cities like Beijing and Shanghai, bus routes were limited and conductors would routinely refuse to allow more passengers on when buses were too crowded, making bicycles often the best way to get around. Every girl dreamed of one day having a bicycle at her wedding, and riding a bicycle to visit tourist sites was a popular recreational activity.

Over these decades, China became known as a "Bicycle Kingdom" - Beijing alone had nearly a million bicycles in 1965, 1.44 million in 1970 and 2.33 million in 1975.

The '80s: Families adopt Motorcycles

From the end of the '70s when China just began to embark of its economic reform and opening up drive, motorcycles became the new symbol of the good life, along with electronics like cameras, televisions and refrigerators.

Previously, motorbikes were only equipped for military use in China, but the Jialing 50 became the first popular motorcycle model that was affordable for Chinese citizens.

With the rise of motorcycles, people's reliance on bicycles began to drop. The age of "Forever" and "Phoenix" bikes seemed to end overnight.

The '90s to 2009: Private Cars No Longer a Dream

China's government first allowed individuals to buy automobiles in 1994, a milestone year for China's auto industry. Before, people only saw buses and government cars on the roads, but domestic cars such as "Xiali," "Fukang" and "Sangpu" became the major brands for individual buyers who could afford the high prices.

In December 2001, China officially joined the World Trade Organization. The resulting price cuts in the auto market stimulated consumer demand and pushed the industry's profits up to 4.3 million yuan in 2002, a year called "Year One for China's Auto Industry."

Private cars greatly extend the radius of people's lives. Driving to the city's outskirts has become the most popular holiday recreation for citizens. Surging private car purchases has therefore also promoted not only finance- and production-related industries, but tourism as well.

According to the latest government statistics, the number of cars in Beijing reached 3.77 million in July 2009, with a growth of 1,700 units per day.

Currently, there are about 38 private cars per thousand Chinese people, far fewer than the global average of 139 units per thousand people. According to some estimates, at least 10 million more Chinese families could afford to buy a private car.

(CRIENGLISH.com September 25, 2009)

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