October 12, 2008

Chinese auto market future mixed

China Business News reported that many automakers experienced sales declines in April 2008 as compared with March 2008, triggering great anxiety about China's auto market in the future.

According to many automaker executives like Mr Ren Yong vice GM of Dongfeng Nissan and Mr Liu Yuhe executive VP of Dongfeng Honda, the soaring consumer price index and slowing world economic growth bring too many uncertainties to China's auto market in the second half of 2008.

According to a survey conducted by Sinotrust, 71.6% of consumers surveyed do not want to see auto price hikes in 2008, 13.6% say price hikes will occur and the remaining 14.7% say they will wait and see.

But Mr Li Chunrong VP of Dongfeng Passenger Vehicle Company said that China's auto market will continue to grow as Chinese economy's upward trend continues.

Latest figures from the price supervision center under National Development & Reform Commission suggested that Chinese domestically manufactured vehicle prices edged up by 0.15% MoM, but down by 3.17%YoY.