It was a roller coaster ride for the Chinese passenger car industry during 2009 when it was on an expansion spree, but it simply seems to have lost its momentum this year with reports of shrinking growth rates. Their sales for the passenger car segment rose up by just 19.4 percent compared to a year ago figure, which shows the slowest possible gain in a span of 14 months.
To cover this up the company’s executives and analysts spoke out that the successive period for industry players is challenging as the greater expectations from the company the comparison base is much higher due to the great sales growth a year ago. Subsequent labor disputes too is another reason for the falling growth rate, though analysts predict labor troubles to be a continuing phebomenon. To add to it, a senior executive at Dongfeng Motor Group Co., a renowned auto group, said that there is a strong possibility of the growth to be strong for the first starting months.
He also added that the growth won’t be on a single and same place again and that the market growth will “head south in July and August.” In China the car sales were not such blooming in the year 2008 but the arrival of April 2009 changed all that and it started blooming soon as the company started setting monthly records of sales quiet often.
But this high time came to a slow down by April 2010, by a meagre increase by one third of the previous year. However May saw a rise of 25.8% sales than the previous year. But in the last five of six months the sales volume was subsequently maintained above the one million mark.
This shows the country’s continuously increasing wealthy class of people and a greater demand of cars in the country. Sales have increased in China is what the officials of the China Association of Automobile Manufacturers have to say as 1.04 million sedans, vans, and sport utility vehicles were sold in June this year as compared to the 872,900 units the previous year.