China

As sport utility vehicles (SUVs) become increasingly unpopular in Europe and the United States, the gas-guzzling wagons are capturing the attention of an expanding class of Chinese consumers: the new rich. The rapid increase in SUV sales in China is the result of a strong push by international automakers to capitalize on the huge Chinese market, using captivating ads to stimulate an individualistic SUV culture. This trend, if left unchecked, will likely only compound the already serious air-quality problems in a country beleaguered by mounting urban air pollution.

China’s auto industry has expanded at double-digit annual growth rates in recent years, thanks in part to cheap fuel prices that remain under tight government control. Against this background, SUVs fared particularly well in 2007. According to the China Association of Automobile Manufacturers, more than 370,000 of the vehicles were sold in China last year, a 58 percent increase over 2006. The bulk of the sales concentrated on mid- and high-end models, which are expected to dominate the market in 2008.

WorldWatch