Forecasts for Chinese passenger automobile sales in January optimistic

Gasgoo.com (Shanghai February 8) - The Chinese passenger automobile market may have experienced year-on-year sales growth of 50 percent last month, the Shanghai Securities News cited the Chinese Passenger Car Association as stating. Production and sales volumes of domestic own brand manufacturers look set to be especially noteworthy.

According to the CPCA's summary, January is traditionally a strong shopping season, with consumer demand for automobiles estimated to be 9.5 percent higher than it was in December. The CPCA estimates automobile orders to have increased 8.5 percent from December to January. The CPCA also points to the number of new automobile models introduced in January. A total of 21 new models were introduced over the course of the month, with three of those being entirely new vehicle releases.

Own brands' performances are expected to have been very strong last month. According to CPCA Deputy Secretary General Cui Dongshu, orders for new brand vehicles increased 13.9 percent from December to January. Chongqing-based Changan Automobile reported selling 41,028 own brand sedans last month, 163.2 percent more than it sold last January. The manufacturer manufactured and sold 192,616 vehicles and 199,975 vehicles in January, respectively.

Despite the optimistic market outlook, the China Automobile Dealers Association warns dealerships to be wary of high inventory levels. The dealership inventory warning index in January was at 45.26 percent, .9 percent higher than it was a month before.