ID :
197446
Wed, 07/27/2011 - 06:48
Auther :
Shortlink :
http://m.oananews.org//node/197446
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Chinese carmakers' domestic sales edge down in H1
HONG KONG (Yonhap) - Chinese automobile makers' domestic sales inched down in the first half of the year due to the end of government subsidies for buyers and stiffer competition from foreign brands, an industry report showed Wednesday.
The combined domestic sales of Chinese automakers hit 3.16 million vehicles in the January-June period, down 0.82 percent from a year earlier, according to the report by the China Association of Automobile Manufacturers.
The market share of the companies, including SAIC Motor Corp., Chery Automobile Co., BYD Co. and Chang-an Automobile Group, dropped 2.96 percentage points on-year to 44.39 percent.
The total sales of passenger vehicles in China, including cars, sport utility vehicles, multi-purpose vehicles and minivans, reached 7.1 million units in the same period, up 5.8 percent from a year earlier.
Carmakers started to see slower growth this year in China as the government ended tax breaks at the end of 2010 for those who purchase small cars and imposed a higher tax at the beginning of this year.
The tax breaks, introduced in 2009 to buoy domestic demand during the economic slowdown, boosted China's auto market and helped it overtake the United States as the world's largest in 2009 and 2010.
Chinese carmakers have been facing rising competition from Chinese-foreign joint ventures as they are giving aggressive discounts to buyers following the government's removal of incentives and imposition of regulations on new car purchases.
Market watchers expected auto sales in the second half would be higher than those in the first half, boosted by seasonal demand, with annual passenger car sales likely to grow more than 6 percent.
The number of vehicles registered in China will exceed 100 million this year, rising 18 percent from a year earlier, according to the China Machinery Industry Federation.
The combined domestic sales of Chinese automakers hit 3.16 million vehicles in the January-June period, down 0.82 percent from a year earlier, according to the report by the China Association of Automobile Manufacturers.
The market share of the companies, including SAIC Motor Corp., Chery Automobile Co., BYD Co. and Chang-an Automobile Group, dropped 2.96 percentage points on-year to 44.39 percent.
The total sales of passenger vehicles in China, including cars, sport utility vehicles, multi-purpose vehicles and minivans, reached 7.1 million units in the same period, up 5.8 percent from a year earlier.
Carmakers started to see slower growth this year in China as the government ended tax breaks at the end of 2010 for those who purchase small cars and imposed a higher tax at the beginning of this year.
The tax breaks, introduced in 2009 to buoy domestic demand during the economic slowdown, boosted China's auto market and helped it overtake the United States as the world's largest in 2009 and 2010.
Chinese carmakers have been facing rising competition from Chinese-foreign joint ventures as they are giving aggressive discounts to buyers following the government's removal of incentives and imposition of regulations on new car purchases.
Market watchers expected auto sales in the second half would be higher than those in the first half, boosted by seasonal demand, with annual passenger car sales likely to grow more than 6 percent.
The number of vehicles registered in China will exceed 100 million this year, rising 18 percent from a year earlier, according to the China Machinery Industry Federation.
