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BEIJING, Dec. 28  -- Individual purchases will account for 77 percent of China's sedan sales in 2006, spurring the booming market, according to the China Association of Automobile Manufacturers (CAAM).

Sedan sales will exceed 3.8 million at the end of this year, which means individual buyers will drive about 2.9 million sedans out of the showrooms.

As prices fall, incomes rise and new economy models enter the market, individuals have overtaken governmental institutions and enterprises as major purchasers of sedan cars.

In the late 1990s, when the cost of a sedan was beyond the reach of common people, governmental institutions and enterprises accounted for 60 percent of car sales.

With domestic manufacturers boosting production and finding ways of cutting costs, sedan prices will drop further, said an expert with the State Information Center.

A peak is expected around the year 2009 as more middle-income Chinese families realise their dream of owning a car.

This year the Chinese government reduced taxes and eased restrictions to promote the development of compact cars.

From January to November, sedan sales notched up a year-on-year increase of 38.52 percent to more than 3.41 million units.

China's total auto sales will exceed seven million in 2006, overtaking Japan to become the world's second largest domestic auto market, according to CAAM statistics. 

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