Gasgoo.com (Shanghai December 17) - A recent study by the China Association of Automobile Manufacturers shows that cumulative automobile production and sales numbers over the first eleven months of the year have increased about five percent, the Beijing Times reported today.
According to the CAAM study, production and sales numbers from January to November totaled 17.48 million units and 17.49 million units, respectively. The two figures represent respective year-on-year growth rates of 4.5 percent and four percent. Total automobile sales this year are expected to exceed 19 million units.
The CAAM believes that the low growth rates signify that the Chinese automobile market is still in a period of restructuring. Production capacity currently outweighs market demand, which has put a considerable amount of strain on manufacturers and their dealerships to decrease their inventory levels. This in turn has led to decreasing profits all around.
