China Car Sales Growth Unlikely to Accelerate in H2
2008-07-16 Source：english.chinabuses.com
Summarize：Car sales growth in China, the world's second-largest auto market, is unlikely to accelerate in the second half of the year after a mild first-half slowdown, as a sharp rise in fuel prices weighs on ...
Car sales growth in China, the world's second-largest auto market, is unlikely to accelerate in the second half of the year after a mild first-half slowdown, as a sharp rise in fuel prices weighs on demand, analysts said.
After a surprise hike of nearly 20 percent in fuel prices last month and with more increases likely, they expected second-half sales growth may be capped at 15 to 16 percent, extending the first half's dip to 17 percent from 20 percent-plus annual growth since 2005.
"It is not the June hike itself, but expectations of more such moves that are pursuading people to delay car purchases or shift to more fuel-efficient models," said Wang Mingchun, an industry analyst with Tianxiang Consulting.
Despite the modest slowdown, China remains the world's fastest-growing major car market, with auto ownership lower than 60 cars per 1,000 people -- only one-10th of levels in the developed world.
Global automakers such as General Motors and Volkswagen AG, whose Chinese joint ventures are the leading players in the market, have relied heavily on the Chinese market as a source of sales growth.
Analysts blamed the market slowdown in the first six months of the year, when 3.61 million cars were sold, to a devastating earthquake that hit southwest China in May and extreme weather conditions that blocked roads and hampered auto parts supplies
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