Not surprised that MNCs are clamoring for Chinese market, as when the income increases consumptions increases in geometric progression. As poor countries get richer, they save as much as they can. Savings rates usually rise until countries reach a range of $3,000 to $10,000 per capita GDP. Once in that range, savings rates begin to decline and consumption becomes a larger part of GDP growth as society starts to provide a social safety net. For example, while Chinese per capita GDP quadrupled from $1,000 to $4,000 during the past decade, auto sales rose from one million vehicles per year to over 18 million.
| year | Car sold |
| 2000 | 2.07 |
| 2001 | 2.33 |
| 2002 | 3.25 |
| 2003 | 4.44 |
| 2004 | 5.07 |
| 2005 | 5.71 |
| 2006 | 7.28 |
| 2007 | 8.88 |
| 2008 | 9.35 |
| 2009 | 13.79 |
| 2010 | 18.06 |
| 2011 | 18.5 |
India is also expected to overtake Japan as second largest car market in Asia by 2016.
Story unfold in emerging market favour where discretionary (non food) spending is expected to gain.
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