In 2006, the country that overtook the USA in terms of the number of cars produced was China. China became the world's largest automobile producer that year, surpassing the United States. The rapid growth of the Chinese automotive industry, fueled by increasing domestic demand and foreign investments, led to this significant milestone. China's large population and rising middle class contributed to the surge in car production and sales within the country. Since then, China has continued to maintain its position as the world's largest producer of automobiles.