China’s auto industry has grown rapidly since 2001, with an increase in the production of automobiles by 14.11%. In 2004, the output of automobiles was less than the forecasted output of 5.22 million vehicles, which resulted in production of more than 100,000 vehicles. The main reasons are: First, the sales of automobiles in the first two years are too fast; The interest rate on auto loans increased; the third was the abolition of imported vehicle quotas in 2005, and the existence of consumer confidence in the purchase of coins; Fourth, the impact of soaring oil prices, and an appropriate correction in the growth of automobile production and sales.
According to analysis, in 2005 the car production is expected to be 5.57 million, of which the increase in production of cars is less than 5%. Based on this calculation, the demand for rubber products for automobiles was 223 million pieces of skeleton oil seals, 162 million meters of composite seals, 169 million V-belts, 20.90 million timing belts, and 16.73 million V-ribbed belts. There were 139 million diaphragms, 411 million hydraulic brake cups, 386 million standard meters of rubber hoses, and 136 million shock absorbers. The market demand was still stable.