China exceeded European sales by more than 2m units in 2012.
Sales of passenger vehicles in China increased by 6.8% in 2012 to more than 14 million units, according to the China Passenger Car Association, making it the world’s largest car market. In contrast, European sales recorded a drop of 1.1 million vehicles during the same period.
Languishing sales across Europe's domestic markets have been offset by the increase in demand from China, especially for German automakers. BMW reported that sales, including the Rolls Royce and Mini brands, surged 40% to 326,444 units in 2012. Volkswagen-owned Audi also enjoyed a 29.6% rise through 2012 to 405,838 vehicles.
Forecasting for 2013 is a contentious issue, however. Some believe China vehicle sales could top 20 million units in 2013, while others believe that more stringent regulations in big cities could keep growth as low as 5%.