Overall demand for vehicles in China is expected to fall to 12 percent annual growth, however, due to a continued glut of vehicles. Many producers have routinely slashed prices to remain competitive and attract new customers as the government has created credit restrictions to slow the industry's over-investment ('GM defies slump in China's car market'). Since the HEV represents a completely different type of car than China's current market has, this bad news may not necessarily extend to our enterprise. A glut of traditional vehicles may actually spur some interest toward the new hybrid vehicles, which are more economical to run. Some of the sources of financing for the project, such as the Asian Development Bank or the International Finance Corporation may have inside information on the feasibility of the project ('Sources of Financing and Loan Guarantees for projects in China').
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