Passenger vehicle sales continue to decline in May

08:12, June 08, 2010      

Email | Print | Subscribe | Comments | Forum 

China's monthly passenger vehicle sales continued to decline in May, bringing the risk of a glut to vehicle producers after they aggressively expanded production capacity in response to last year's unexpected market boom.

A total of 1 million cars, multi-purpose vehicles, sports-utility vehicles and minivans were sold in the nation in May, up 23.2 percent from a year earlier, the lowest rate during the past 13 months. The figure was down 5.9 percent from April, according to the China Passenger Car Association.

This is the third time so far this year that China's monthly passenger vehicle segment reported negative growth compared with the previous month.

This compares to domestic sales of 1.31 million in January, with a growth rate of 111 percent year-on-year.

Rao Da, secretary-general of the association, said that the sluggish stock and property markets had started to impact on auto sales, while the week-long production stoppage in Honda's parts plant due to a strike also ate into sales figures.

He predicted similar sales in June and said people should consider buying cars in the coming three months as automakers will launch promotions like price cuts to perk up their sales.

Hu Maoyuan, chairman of China's biggest automaker SAIC Group, said recently that he expected negative vehicle sales growth in the fourth quarter of this year, and cut his prediction for whole-year sales to 15.5 million units, with sales growth of 12.6 percent.

Industry analysts and automakers all previously predicted sales growth of 20 to 25 percent this year, buoyed by 2009's market boom. In 2009, automobile sales surged 46 percent to 13.6 million units assisted by a series of government stimulus measures, making China the world's biggest automobile market.

Brisk sales and insufficient supply last year made nearly all of China's automakers expand their prodution capacity at the beginning of this year.

According to plans released earlier this year, China's automakers will boost their production capacity by 5 million units in total this year, bringing domestic auto production for the whole year close to 20 million units, far higher than the expected sales of between 15 and 17 million.

Dong Yang, vice-president of China Association of Automobile Manufacturers, said in the first four months, China had an inventory of nearly 2 million.

Source: China Daily


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Giant red lantern lights up in Tiananmen Square to celebrate the coming National Day on Oct. 1. (Xinhua/Li Xin)
  • A ceremony is held in Taipei, southeast China's Taiwan, on Sept. 28, 2011, to commemorate the 2,562nd birthday of Confucius (551-479 BC), a Chinese thinker, educationist and philosopher. (Xinhua/Wu Ching-teng)
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
Hot Forum Discussion