Feb. 21, 2007 (China Knowledge) – China's automobile industry made a profit of RMB 76.8 billion in 2006, up 46% from the previous year, according to figures from the China Association of Automobile Manufacturers (CAAM).

A report by the CAAM said that in 2006, China's auto industry sold 7.22 million auto vehicles, increasing 25% over 2005. For the first time, China overtook Japan to become the world's second largest auto market.

China's automakers last year produced 7.28 million vehicles, up 27.32% over the previous year, becoming the world’s third largest auto producer.

The report predicted that in 2007, China's auto market demand will reach eight million.