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China Auto Sales Rise Almost 50 Percent, But Overcapacity Fears Remain

It is a theme that we often refer to, but it is little surprise that auto manufacturing stories continue to grab headlines in China. The industry is experiencing an ongoing sales boom.

Total sales in the world’s largest auto market increased 47 percent year on year in the first half of 2010, according to the China Association of Automobile Manufacturers. This equates to 9.02 million vehicles sold between January and June, of which 3.18 million were “home-made passenger vehicles”, according to the CAMM.

The top five selling Chinese carmakers in the first half of 2010 were SAIC Motor, Dongfeng Motor, Changan Automobile, First Automobile Works, and Beijing Automobile Works. Meanwhile, General Motors’ vehicle sales in China during the first half of outstripped those in its home market for the first time in history. It sold 1.21 million units in China, and 1.08 million in the United States.

There is some concern, however, that Chinese auto manufacturers are expanding output too fast, despite the fact that more and more Chinese are owning their first car or trading up to a newer model. Auto output in China also rose significantly, up 49 percent year on year, for the first half of the year, but car sales in June slowed compared to previous months, prompting fears of possible overcapacity towards the end of the year.

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