China's Auto Market Lacks Macro-economic Support

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According to U.S. media reports, the foreign experts think that the drop out of stimulus measures led to the decrease of demand for cars. Besides, the Chinese auto market still lacks the macro-economic support.

The latest published industry data show that China's auto sales in the May of this year had a year on year fall. At the same time, the vehicle also showed a visible decline in inventories. Market analysts said that the Chinese auto market is moving into a re-adjustment period after the growth spurt in 2009 and 2010.

China's Automobile Industry Association announced on June 9 that the vehicle sales in China market in May was 1380,002 8 billion units, a decline of 10.90%. This is the first time that China's car sales fell for two consecutive months in the last two years. The data also show that in the first 5 months of this year, China's car sales increased by only 4.06% year on year, quite different from the nearly 60% year on year increase in 2010.

Chinese car sales are under significant cooling in 2011after two consecutive years of hot sell. After the April the sales began to decline. Experts believe that the withdrawal of preferential policies have played a significant role in the cool car automobile market.

In 2009, the Chinese government took the tax incentives on the sales of low-emission vehicles. While the government provided subsidies for farmers who update older vehicles with high energy consumption. These measures make the car sales in China surpassed the United States to become the world's largest auto market.

Dr. Tao Qingjiu said that, in addition to the drop out of stimulus measures led to the decrease of demand for cars. Besides, the Chinese auto market still lacks the macro-economic support.

He said: "From the background point of view, the Chinese economy is very difficult this year. While the recent rise in oil prices and the inflation in other areas also to a large extent suppressed the desires of Chinese consumers to buy cars."

From the seasonal factor point of view, the May is not the season for the car sales in China. But even taking into account the fall of the traditional peak season, China's car sales throughout the year is at best the same with the last year.

Statistics show that in response to the decline of car sales, car entrprises in China have begun to cut inventory. By the May, the inventory of China's vehicle market is 661,200 sets, down nearly 20% than the end of 2010.


About the Author:
I am Amanda Xia from autochinanet.com, and my work is to promote a free online trade platform. http://www.autochinanet.com/ contain a great deal of information about truck engine softwar,affordable used cars, car wheel covers,and more.



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