Chinese carmakers cut sales forecast as growth stalls
Stock market rout and economic downturn blamed for depressing demand, as trade body projects lowest full-year increase since 2011
The national carmakers association cut its growth forecast for vehicle sales this year after a slower-than-expected first half as stock market turmoil depressed demand.
The China Association of Automobile Manufacturers (CAAM), a government-backed industry group, said yesterday it expected full-year sales - including both passenger cars and commercial vehicles - to increase by 3 per cent this year, the lowest increase since 2011.
The association in January projected sales to grow by 7 per cent to more than 25 million, after posting a 6.9 per cent increase last year.
Vehicle sales on the mainland grew by 1.4 per cent to 11.85 million units in the first half of this year.
Passenger car sales in that period increased by 4.8 per cent to 10.09 million vehicles, though commercial vehicle sales declined by 14.4 per cent to 1.75 million units.
Dong Yang, secretary general of CAAM, said the market would probably recover a little in the second half of the year if the stock market stabilised.
"The stock market has some impact on consumers' cash flow, and I noticed that fewer people visited [dealerships]," Dong said.