(Photo : Audi)

American global management consulting firm McKinsey & Company said China will account for more than half of the $104 billion global car market by 2020.

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McKinsey's forecast was also supported by the China Securities Journal, which said that emerging markets around the world will take up two thirds of the global car industry by 2020 as the industry recovers from the financial crisis several years ago.

China's car market, which is the largest in the world with 19 million cars sold in the country last year, is poised to further expand its growth to take up half of the world's car industry profits.

Rising Demand for After-Sales Services

While China's car sales have slowed for now, the McKinsey report said the market will continue to bring profits to manufacturers and stake holders in China's car industry because demand for after-sales services such as accessories, maintenance, secondhand car sales, and financing will continue to grow.

McKinsey said global car industry profits in 2012 reached $71 billion or $17 billion higher than five years ago when the financial crisis hit the industry.

The car industry profits around the world are expected to hit $104 billion by 2020, with half of it or $52 billion coming from China.

August Car Sales Went Up

The China Association of Automobile Manufacturers said this week that China's car sales went up by 11 per cent in August, the fastest increase in four months as demands from small, less-affluent cities continue to grow.

The association said car manufacturers sold 1.35 million passenger vehicles, which include sedans, SUV, and minivans, in August. A year earlier, automakers sold only 1.22 million units.

An analyst at market research firm IHS said car makers in China are picking up the pace after two years of slow growth.

To entice more buyers, car makers in the country introduced 25 new models in January through July, which explains the August growth.