ID :
186514
Sun, 06/05/2011 - 08:47
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https://oananews.org//node/186514
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China's auto sales drop in May for second month
By Kim Young-gyo
HONG KONG, June 5 (Yonhap) -- China's automobile sales dropped for the second month in a row in May, an industry group said Sunday, pointing to slowing demand after Beijing stopped offering incentives and introduced new limits on car purchases earlier this year.
Vehicle sales in China shed 13.95 percent on-month to 1.19 million last month, the China Association of Automobile Manufacturers (CAAM) said. It was a 29.74 percent increase compared to the same month last year.
Auto output fell 14.36 percent from a month earlier to about 1.31 million units in May.
The industry group attributed the continued decline in May sales to the end of the tax breaks and incentive policies in the country.
The Chinese government ended tax breaks for purchases of small cars at the end of 2010 and reimposed a 10 percent tax at the beginning of this year.
The tax breaks, introduced in 2009 to buoy domestic demand amid the economic slowdown, had boosted China's auto market and helped it overtake the United States as the world's largest in 2009 and 2010.
The CAAM said rising oil prices and quake-hit Japanese car parts suppliers are also negatively affecting auto sales in China.
Wang Qingtao, analyst at China's Sealand Securities Co., expected the downward trend in the Chinese auto industry would likely continue for a while, saying "the market fundamentals are not likely to change drastically."
HONG KONG, June 5 (Yonhap) -- China's automobile sales dropped for the second month in a row in May, an industry group said Sunday, pointing to slowing demand after Beijing stopped offering incentives and introduced new limits on car purchases earlier this year.
Vehicle sales in China shed 13.95 percent on-month to 1.19 million last month, the China Association of Automobile Manufacturers (CAAM) said. It was a 29.74 percent increase compared to the same month last year.
Auto output fell 14.36 percent from a month earlier to about 1.31 million units in May.
The industry group attributed the continued decline in May sales to the end of the tax breaks and incentive policies in the country.
The Chinese government ended tax breaks for purchases of small cars at the end of 2010 and reimposed a 10 percent tax at the beginning of this year.
The tax breaks, introduced in 2009 to buoy domestic demand amid the economic slowdown, had boosted China's auto market and helped it overtake the United States as the world's largest in 2009 and 2010.
The CAAM said rising oil prices and quake-hit Japanese car parts suppliers are also negatively affecting auto sales in China.
Wang Qingtao, analyst at China's Sealand Securities Co., expected the downward trend in the Chinese auto industry would likely continue for a while, saying "the market fundamentals are not likely to change drastically."
