Chinese auto market may continue to decline in Q4

Shanghai, November 13 (Gasgoo.com) The recent statistics from the China Association of Automobile Manufacturers (CAAM) show that China couldn't achieve the output and sales target of 10 million vehicles for 2008. "China's auto market may continue to decline year on year in the last quarter," said Rao Da, secretary-general of China Passenger Car Association (CPCA), Shihua Financial Information reported.

CAAM data have revealed that during October, auto output and sales slid from last month, with commercial vehicles posting the largest drop. From January through October, China's vehicle output and sales both grew 11 percent over last year, but reflecting the negative growth rate continually. As the ten-month sales hadn’t reached 8 million, the expectancy for 10 million vehicles in 2008 has been disconfirmed in advance.

"Too many adverse factors disappointed the auto sales this year," Rao said. "The financial crisis has dragged down the global economic growth rate, while most countries have suffered declines in their auto market growth."

The cost and fuel price hike have also hampered automakers' price reduction and sales promotion. And, the rising car expense like vehicle purchase tax was also a factor that blocked auto sales.

Rao estimated that November sales will remain relatively flat compared with last month, which indicates the domestic sales will continue the negative growth during this month. No doubt the auto market will continue to decline in the fourth quarter.