Friday 10 February 2012

Chinese economy slowdown


China Passenger Car Sales Tumble 24% on Earlier-Than-Usual Lunar New Year



10 February, 2012

China’s monthly passenger-vehicle deliveries fell the most in more than seven years after an earlier-than-usual Lunar New Year holiday season deprived dealers of a week’s worth of sales.

Deliveries of passenger automobiles, including multipurpose and sport-utility vehicles, dropped 24 percent from a year earlier to 1.16 million units last month, the China Association of Automobile Manufacturers said yesterday in a statement. Sales were projected to drop 18 percent, according to the median of a Bloomberg News survey of five analysts who predicted declines ranging from 8.5 percent to 30 percent.

The slump follows Chinese government estimates that holiday sales at the nation’s main retailers and restaurants rose at their slowest pace since the 2009 financial crisis, adding to signs the world’s second-largest economy is cooling. Carmakers from General Motors Co. to Ford Motor Co (F). are counting on a rebound in February as they rely on China, the world’s biggest auto market, to help drive earnings this year.

“Even though the actual holiday was five working days, some dealerships took the opportunity to close their stores for a longer time,” said Ran Fei, an analyst with Great Wall Securities Co. in Shenzhen. “The numbers are disappointing.”

For article GO HERE

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