Booming Auto Sales May Hardly Last Till the

　　On July 5, China Automobile Technology and Research Center announced that cumulative output and sales of Chinese car market were respectively 8.4722 million and 7.1853 million units, up 44.37% and 30.45% compared with the same period of last year respectively. During the recent half a year, China’s auto industry achieved a high opening and stable development situation: sales of January were great with output reached more than 1.5 million units. Until March output reached the highest monthly level with a nearly 1.7 million units output. After that, impacted by slump of terminal sales growth of Chinese car market began slowing gradually. In June, month to month decline created the lowest level in the history, however, output of China’s auto industry still ranked first in the world.

　　As the China Automotive Technology and Research Center disclosed the statistical data, the major automakers also released their statistics. Based on the information which has been released, there are three auto manufacturers whose completion rates are above 50%, according to the Shenzhen Evening News. The completion rate of Shanghai GM is 58% and that of Dongfeng Nissan is 55% and Shanghai Volkswagen’s rate is 53%. The completion rate of FAW Volkswagen is 51% and that of Beijing Hyundai is 50%. As to domestic auto brands, the completion rates of Chery and Geely are 45% and 50% respectively. The level of BYD is 37% which is relatively lower. Most auto manufacturers have completed the tasks which were set at the beginning of 2010. It is alarming that after the digestion of orders in the first three months in 2010, the price started to plunge from the end of March. The interests of dealerships were sacrificed in order to fulfill the sales. In the first half of 2010, the overall inventory of 1.3 million units was near the upper limit, which showed that the sales were faced with difficulties. In the second half of 2010 the auto industry may find it tough to maintain the hot sales.

　　However, this year Chinese auto market still has growth points. For example, the exports business brings new stimulus point for China's auto market. The government has issued the subsidy polices for new energy cars, which may also propel the development of auto market. At the same time, all the major automakers are actively looking for the ways such as reducing inventory and introducing new models to get prepared for the second half of 2010. For the consumers who plan to buy a car in 2010, that's a piece of good news. (Translator: Qinghua/Hanxin&Wade)

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