Auto Output Down Slightly in June

BEIJING, July 29 (Xinhua) -- China's domestic auto manufacturers produced 48,900 cars in June, a slight drop of 2.6 percent from the same period last year, today's Market Daily reported.

The total auto output in the first half of this year was 271, 300, up 5.7 percent on a year-on-year basis.

This was the second drop since March and, analysts say, the result of a short-lived surge in car production earlier in the year, which caused oversupply. They predict that the overall increase rate of auto production will continue to decline on a monthly basis.

Jilin, a major industrial city in north China, is experiencing a steady growth of auto production this year and is considered to have the brightest market prospects among all cities nationwide.

However, in Shanghai, a major auto production base, auto output has declined monthly, and will continue to decline even more in the second half this year, market analysts predict.

With the slackening demand for cars, the expansion of car production in Shanghai is becoming increasingly difficult, analysts say.