Vehicle sales decline 1.4% in China

  • 12/10/2008

  • Asian Wall Street Journal (Hong Kong)

PASSENGER-VEHICLE SALES in China fell for a second month in a row in September, dropping 1.4% from a year earlier to 552,800 vehicles and heightening worries about a demand slowdown. Sales of passenger vehicles in the January-September period rose 11.4% to 5.1 million units, the China Association of Automobile Manufacturers said. The September decline in passenger-vehicle sales suggests full-year sales growth could fall to a single-digit percentage, said CSM Worldwide analyst Yale Zhang. That would be down from a rise of 21.8% in 2007. "Most people had expected sales to recover in September, but that didn't happen," Mr. Zhang said. "Consumer confidence is simply weak...People realize that China is part of the global economy." The sales drop in China adds to the bad news for global auto makers, who had relied on sales in the country to offset weakness in mature markets. In August, China's vehicle sales fell 6.3% from a year earlier