Auto sales post 1st drop in 27 months
By Jin Jing |
May 11, 2011, Wednesday
|
Print Edition
Print Edition
CHINA'S auto sales posted its first annual decline in 27 months in April amid rising fuel prices and the expiry of government incentives to boost buying.
Car makers sold a total of 1.55 million vehicles last month in China, down 0.25 percent annually, the China Association of Automobile Manufacturers said yesterday. The sales decline followed a 5.36-percent growth in March and 4.57-percent increase in February.
April's sales were also 15 percent lower than March's.
For the first four months of this year, vehicles sales gained 6 percent to 6.53 million units, but they were 2.12 percentage points lower than the first quarter's and also a sharp decline from the 60.5 percent surge in the same period of last year.
Combined sales of passenger cars, including sedans, multi-purpose vehicles and sport utility vehicles rose 2.79 percent annually to 1.14 million units in April while commercial vehicles fell 7.84 percent from a year earlier to 409,700 units, the association said.
Dong Yang, vice chairman of the association, said full year sales growth is likely to fall short of an earlier estimate of 10 percent and may even be slower than the nation's gross domestic product target of 8 percent.
"The auto industry faces a very tough growth situation this year," Dong said.
The end of government stimulus on fuel-efficient small cars and purchase curbs in some big cities slowed vehicle sales in the world's largest auto market this year after a two-year surge. Demand was also dented after the central government raised retail gasoline and diesel prices twice this year and Japan's devastating earthquake disrupted deliveries and affected Chinese output.
"Car sales in big cities saw a significant drop because of higher driving costs and traffic congestion," said Yale Zhang, managing director of Automotive Foresight (Shanghai) Co Ltd, who estimated full year sales growth to be less than 5 percent.
"But the market has potential to recover next year with solid demand in second- and third-tier cities."
Car makers sold a total of 1.55 million vehicles last month in China, down 0.25 percent annually, the China Association of Automobile Manufacturers said yesterday. The sales decline followed a 5.36-percent growth in March and 4.57-percent increase in February.
April's sales were also 15 percent lower than March's.
For the first four months of this year, vehicles sales gained 6 percent to 6.53 million units, but they were 2.12 percentage points lower than the first quarter's and also a sharp decline from the 60.5 percent surge in the same period of last year.
Combined sales of passenger cars, including sedans, multi-purpose vehicles and sport utility vehicles rose 2.79 percent annually to 1.14 million units in April while commercial vehicles fell 7.84 percent from a year earlier to 409,700 units, the association said.
Dong Yang, vice chairman of the association, said full year sales growth is likely to fall short of an earlier estimate of 10 percent and may even be slower than the nation's gross domestic product target of 8 percent.
"The auto industry faces a very tough growth situation this year," Dong said.
The end of government stimulus on fuel-efficient small cars and purchase curbs in some big cities slowed vehicle sales in the world's largest auto market this year after a two-year surge. Demand was also dented after the central government raised retail gasoline and diesel prices twice this year and Japan's devastating earthquake disrupted deliveries and affected Chinese output.
"Car sales in big cities saw a significant drop because of higher driving costs and traffic congestion," said Yale Zhang, managing director of Automotive Foresight (Shanghai) Co Ltd, who estimated full year sales growth to be less than 5 percent.
"But the market has potential to recover next year with solid demand in second- and third-tier cities."
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