Driven by the government's stimulus measures to revitalize the automobile industry, my country's tire manufacturers are operating at full capacity, and the consumption demand for rubber has increased. The tire manufacturing industry began to recover from the end of February, and most of the production will resume at the beginning of March. The person in charge of Hangzhou Zhongce Rubber Co., Ltd. said that it is still uncertain how long this state will last. Experts understand that car sales in China surged by 25% in February. After the government reduced taxes on certain models, it was the first increase in four consecutive months. Fan Deren, chairman of the China Rubber Industry Association, said that tires account for 60 to 70% of China's rubber products. Jason, the sales director of Von Bundit Ltd., Thailand's largest rubber exporter, said that the Chinese market seems to have run out of stocks, and Chinese tire manufacturers have increased their production capacity to 80-90%, so demand is expected to increase in recent months; China Traders are actively buying. China's auto sales rose in January, surpassing the United States to become the world's largest auto market. The Chinese government is currently issuing a subsidy of 500,000 yuan for cars going to the countryside to promote car sales in rural areas. The price of natural rubber has fallen by 50% in the past year due to the global economic recession that has reduced tire demand. In 2008, the European auto market shrank by 7.8%, while sales in the US market fell by 18%, the lowest in 16 years. The outlook for China's rubber demand is still uncertain, and the market continues to wait and see whether there are positive factors. As the world's third largest economy, China's natural rubber consumption this year may increase by 4.7% to 2.65 million tons from 2.53 million tons last year. The chairman of the my country Rubber Industry Association said that its consumption growth rate was much lower than that of 7.7% in 2007. James McGraw, general manager of the International Synthetic Rubber Producers Association, said that my country’s demand for synthetic rubber will remain stable in 2009, as global natural rubber consumption is expected to drop by 4 to 5%; China’s demand for synthetic rubber may continue to rise strongly. The supply of synthetic rubber to the members of the organization accounts for 95% of the world's total. Van Deren said that my country's State Reserve Bureau may purchase up to 80,000 tons of natural rubber from the domestic market to increase prices.