Chinese automakers’ profits decline
Chinese passenger car manufacturers' profits declined 78.4% year on year in the first two months of 2005.
Statistics released by
China's National Statistics Bureau show that from among 34 car producers, only 11 posted profits.
Rising steel prices and falling car prices formed a disastrous combination for Chinese automobile manufacturers. Sources report that car prices in
China dropped as much as 12% in 2004.
Passenger car sales are expected to rise only 10% in 2005, as opposed to the 75% rise in 2003 and 15% rise in 2004.
Production in the first two months of the 2005 declined 1.5% year on year.