Passenger car sales likely to grow 3% in H2

Shanghai, August 18 (Gasgoo.com) China's passenger-vehicle sales dropped by 12% in July from June, a decline that lasted for four straight months due to the oil price hike and natural disasters, said data from China Passenger Car Association (CPCA), who predicted that the sales of passenger vehicles in China will grow by only 3% in the second half of this year.

Domestic passenger vehicle sales rose a slightly 3.2% year on year (y/y) to 462,000 units in July, but down 11.5% from 522,000 units of June. Rao Da, secretary general of CPCA, said that the second-half sales of passenger vehicles will grow only by 3% y/y or so and the industry association’s earlier estimated sales target of 10 million units in 2008 is impossible to reach. The car sales growth is expected to continue its slowdown trend.

Due to the fuel price rise, many consumer have delayed or canceled their decison to buy cars. And meanwhile the growth of China's economy has also started to slow down, which will make people spend less money on car buying in the coming months.

Industry experts said China's passenger vehicle sales in the whole year of 2008 will not grow more than 10%, less than half of the 20% growth goal.