China’s appetite for bigger cars will increase oil demand, but may be offset by gains in fuel efficiency.
Wheel clamps may be the only solution for SUV consumption Image: Aaron Huo |
Chinese oil consumption is slated to increase at an average annual pace of 5% to 12.9m barrels a day, up from 9.6m barrels a day in 2012, according to Sanford C. Bernstein Research.
The increase in oil demand is likely to be driven, in part, by the nation’s growing fleet of sports utility vehicles (SUVs which could have an adverse affect on gains made in overall vehicle fuel efficiency.
The research firm forecast the proportion of SUVs in the Chinese passenger fleet would increase 20% to 44m vehicles in 2020, with the total number of vehicles also doubling to more than 220 million in the same period.
As demand growth shifts from industry to transport, gasoline consumption has grown by around 15% annually, compared to a 1.8% decrease in diesel use.