Growth in car sales slows down in China
Car sales in China, the world's third-largest auto market, increased by 15.2% in 2004 to 2.33 million units. The growth rate in 2003 was 75.28%. According to the data released by the China Association of Automobile Manufacturers, total vehicle sales, including trucks and buses, rose by 15.5% in 2004 to 5.07 million units. Market sources noted that the measures taken by the government to cool down five industry sectors, including the automotive industry, might have put pressure on prices and intensified the competition. It was highlighted that these factors might be responsible for the slowdown in the car sales growth rates. Analysts expect car sales in 2005 to increase by about 10%. Volkswagen AG, which counts China as its largest market outside Germany, posted a 6% decline in sales of its two China ventures. On the other hand, General Motors Corp reported a 27% rise in its sales. Global automakers including Ford Motor Co, Nissan Motor Co Ltd and Toyota Motor Corp are investing over $13 billion in China to increase their annual production to more than 6 million cars by 2010.