Higher fuel prices, jams slow mainland car sales
Mainland car sales dropped 3.4 per cent from a year earlier to 4.8 million units in the first quarter as buyers were deterred by higher fuel prices and traffic jams in some big cities.
Car sales rose 1 per cent last month to 1.84 million units, of which 1.4 million were passenger cars including sedans, SUVs, MPVs and mini vans, the China Association of Automobile Manufacturers said.
'Both the manufacturing and sales of cars in the first quarter were not ideal,' said He Ruide, a director of car research at Beijing's Bayes Consulting.
An array of stimulus measures to boost car purchases ended in December 2010, including tax breaks and government subsidies on fuel-efficient vehicles.
The rush to qualify for the incentives led to increased purchases in the first quarter of last year, said an analyst who asked not to be named.
'Many people rushed to buy at the end of the year but the deals could only be sealed in the first quarter of 2011, resulting in a high base for this year,' he said.