Gasgoo.com (Shanghai May 12) - The passenger vehicle market is closely linked with the country's macroeconomic policies, therefore without said market conditions being clear, investors are taking a more and more cautious approach. Last month, the Chinese market has encountered negative growth for the first time in over two years. According to a report in International Finance News, the Chinese Association of Automobile Manufacturers announced that 1.54 million vehicles were sold in April, a decrease of about 15 percent from March and 1 percent from 2010.
Due to a variety of factors ranging from the holiday season to the recent disasters in Japan, the market has been in a downturn since the start of the year. With passenger cars playing more and more of an important role in the country, the market as a whole has been negatively affected.
"By looking at April's figures, demand in the market is clearly weak," famed industry analyst Lang Xuehong said in an interview with the press. With the market in such a precarious state, it is no wonder that investments are becoming sparser. Chen Zheng, an analyst at China Securities, had a similar viewpoint, adding that logistics and shipping loans were being affected as well.
