China Car Sales See 4-month Consecutive Decline

SHANGHAI - August 12, 2008:

China's passenger-car sales dropped for 12 percent in July month on month, a decline that has lasted for four straight months, Xinhua reported, citing data from China Passenger Car Association (CPCA).

Domestic passenger vehicle sales rose a slightly 3.2 percent to 462,000 units in July, but down 11.5 percent from last month's 522,000 units.

Rao Da, secretary general of CPCA, the semi-official automotive body, blamed the sales downturn on higher fuel prices and the overall economic environment. He predicts that August sales will continue to see impact from such negative factors as hot weather and the stock market.

Other analysts also believed that people will delay purchases because of this month's Beijing Olympics, particularly for consumers in the capital. Beijing has banned 50 percent of vehicles from entering the city for about two months to cut pollution during the Olympics.

For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html