China Auto Export To See Negative Growth In 2009

Shanghai, December 29, 2008: (Gasgoo.com) Industry analyst predicts that China's vehicle export will head toward a negative growth in 2009 as industry figure already shows a sheer decline, the Shanghai Securities News reported Monday.

"That forecast is well-grounded given the November export figure," said Tan Jijia, an auto analyst from Pacific Securities Co Ltd.

Data released by China Customs showed that China auto exports (including completely knocked-down kits) posted 33 percent decline from a year earlier in November, amid which exports of semi-trailer went down by 70 percent.

Xu Changming, senior economist at the Information Resource Department of State Information Center, told the newspaper that the impact of the financial crisis on the US market is expected to heavily hit China's auto exports in 2009, and it may not be able to recover very soon because of weakening demand overseas.

Tan said the government can tackle the issue by raising export tax rebates, regarding which the government already said it would take effective measures to help domestic carmakers expand export. Tan also said the yuan devaluation also helps.

China's vehicle exports reached 557,736 units in the first three quarters of this year, up 34.9 from a year earlier but the growth slid rapidly in the second half of this year.

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