China surpassed the U.S. as the world’s largest car market on sales of sedans. Future growth lies with sport-utility vehicles.

SUV deliveries rose 30 percent this year through May, compared with a 6 percent gain for total passenger-car sales, according to the China Association of Automobile Manufacturers.

Sales of SUVs in the world’s second-largest economy will increase 33 percent in the two years through 2012, almost twice the pace in the U.S. and four times that of Western Europe, according to Lexington, Massachusetts-based IHS Automotive, an industry consultant. Porsche SE already sells more Cayennes in China than anywhere else in the world.

“It’s the next great wave of consumer demand in China,” said Bill Russo, Beijing-based senior adviser at consulting company Booz & Co. “First-time buyers buy sedans, second-time buyers look for more variety.” 

(Bloomberg)