Dongfeng Q1 sales down 14.3% to 43,000 units

Shanghai, April 15 (Gasgoo.com) Dongfeng Automobile Co, the listing unit of China's third-largest automaker Dongfeng Motor, sold 43,004 vehicles in the first three months of this year, a drop of 14.3% from a year earlier, the company told the media yesterday.

In the first three months, Dongfeng Auto's sales of commercial vehicles fell 16% to 32,137 units, while combined sales of sport utility vehicles, multi-purpose vehicles and pickups declined 8% from a year earlier. Engine sales slumped from 51,000 units in January to 22,541 units in March.

Because of the financial crisis and slowing economy, China's vehicle sales suffered their slowest sales growth last year. But the overall market rebounded since February after China introduced tax breaks on small-engine vehicles and offered vehicle subsidies in rural areas to spur domestic demand.

The recovery in car sales is powered by higher demand for minibuses and small-engine vehicles. "Dongfeng's major products are SUVs and pickups, which are less likely to benefit from the government incentives," said an analyst.

Last month, China's passenger car sales rose 10% to a record high of 772,400 units after a 24% surge in February. But commercial vehicle sales in March continued to see a 5% decline from a year earlier.

Earlier this year, Dongfeng Auto said it would focus on expansion in the rural areas, a huge booming auto market that many automakers have started to tap for sales growth.