China's auto production and sales volume in the first quarter of 2011 reached 4.9 million and nearly 5 million units, respectively, an increase of only 7.5 percent and 8.1 percent from the same period of last year, according to statistics released by the China Association of Automobile Manufacturers (CAAM) on April 10. In March, domestic auto production and sales volume both reached roughly 1.8 million units, an increase of more than 5 percent for both from a year earlier - People Daily said.

Dong Yang, executive vice chairman and secretary-general of CAAM, said the positive side is that the decline in the growth rate will help enhance resource utilization and benefit the sustainable development of the auto industry. The negative side is that an 8 percent growth rate was much lower than expectations, with an overly sharp decline in the growth rate.

First, the central government canceled the vehicle purchase tax concessions, vehicle subsidy program for the countryside and trade-in car scheme in addition to transforming the country's economic development pattern. Second, fuel prices keep rising. Third, certain cities have limited new vehicle registrations to combat congestion. Fourth, the domestic haulage vehicle market has become sluggish since the introduction of strict fuel-efficiency standards. Fifth, the earthquake in Japan has had an obvious impact on the Chinese auto market, though it remains to be seen how big the impact will be - according to english.peopledaily.com.cn.

The top ten automakers in the month were SAIC, Dongfeng, FAW, Chang’an, BAIC, GAC, Chery, JAC, Brilliance, and Geely, in sequential order - according to China Car Times. The ten automakers sold a combined 1.5843 million vehicles, or 87% of the country’s total sales.

Source: english.peopledaily.com.cn
Source: China Car Times

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