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Growth of car production keep declining in August


23-Sep-2005 - Xinhua
China produced 251,500 cars in August, 13,300 fewer than that in July, and 23,600 fewer than in June, according to figures released by the National Bureau of Statistics.

Car production in August rose 46.3 percent year on year, but the growth rate further dropped over the previous months. The growth rate was 14.7 percent in the January-August period.

Car production in five regions, including the municipalities of Chongqing and Shanghai, dropped in August despite nearly 50 percent growth across the nation. The production in northeast China's Jilin Province kept declining for seven consecutive months.

Market anticipation for lower prices of cars has enhanced after Shanghai Volkswagen initiated the "hurricane move" to promote sales mainly through price cuts.

Surveys showed that most consumers expect car price to be lower in September and more consumers take a "wait and see" stand for car consumption.

According to the statistics, Beijing sold 7.8 percent fewer newcars in August than in July, and the decrease rate was 8.8 percent for the entire nation. Sales for Shanghai Volkswagen, however, grew 13 percent over July due to the sales promotion efforts.
23-Sep-2005 - Xinhua

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