China light vehicle sales said to slump in 2009

Shanghai, April 1 (Gasgoo.com) China's light-vehicle sales are projected to decline by nearly two percent in 2009 to 8.57 million units, J.D. Power and Associates, a market-research firm reported Thursday, said in a press release Wednesday.

Sales of light-commercial-vehicle market are forecasted to decline by nearly three percent to 2.75 million units, while passenger vehicle sales (including cars, MPVs and SUVs) are expected to come in at 5.83 million units, down by one percent from 2008.

"The once red-hot Chinese economy is slowing markedly due to a pronounced downturn in global demand its exports," said Michael Dunne, managing director of J.D. Power Asia Pacific, Shanghai.

"The country's key export sector reported a 17 percent year-over-year decline in January, compared to an average of 20 percent growth during the first ten months of 2008," he said. But government's industry supportive policies are expected to encourage sales of certain vehicle types.

Changes in purchase taxes on new vehicles and increases in fuel taxes are expected to cause a shift in demand toward smaller vehicles. In particular, sales of sub-compact cars are projected to increase by two percent in 2009, compared with 2008.

In contrast, sales of larger vehicles—including compact and midsize cars—are expected to decline by three percent and four percent, respectively.