August 2008 Car Sales In China Fall 6.25%

Wednesday, September 17, 2008

SHANGHAI, Fang Yan writing for Reuters, provided us with detailed information about the world's second-largest auto market,
which solds nearly 451,300 cars last month which are 6.24% down if we compare to the old year,
the China Association of Automobile Manufacturers, the country's official industry association, said on Monday.

There is a doubt that further declines in the sale will occur due to rise in the petroleum prices.

Rao also predicted an end to China's era of 20 percent-plus annual growth in passenger cars sales, with 2008 growth falling sharply
to 6 to 8 percent, followed by more moderate growth rates of 10 to 15 percent from 2009 to 2015.

China,(The most populated country in the world) raised about 20 percent prices in petroleum sector in late june,
the first rise in seven months and the steepest one-off hike ever.

But Rao noted that the slowdown had simply brought the car market's growth rate into line with the overall economy.

"In the global auto industry, 10 to 15 percent annual sales growth is still very fast," he said.

In the first eight months of the year, 4.55 million sedans, sport utility vehicles and multipurpose vehicles were sold in China, up 13 percent from a year earlier, the country's official auto association said in its monthly report.

Joint ventures of Volkswagen AG and General Motors Corp are the top three car sellers in China.