Chinese Auto Imports/Exports fall in August – a slight dent in the dream

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China is longing to become a worlwide automotive powerhouse, just as the US, Japan, Korea, and perhaps even Britain did, but the recent economic crisis is set to put a slight dent into the Chinese automotive dream:

China’s import and export value on motor vehicles and related products stood at 7.417 billion U.S. dollars in August, a decline of 3.85 percent from the previous month, according to China Association of Automobile Manufacturers (CAAM).

The total included 2.713 billion U.S. dollars in arrivals, down 7.6 percent from a month ago, but up 22.58 percent over the year-earlier level; and 4.704 billion dollars in foreign sales, down 1.53 percent month-on-month, but up 23.32 percent year-on-year.

August saw the nation’s imports of complete vehicles, particularly large-engine cars, increase from a month earlier, but exports of such products drop.

China bought from abroad 5,365 vehicles each with a displacement of at least 3,000 ml last month, up 28.7 percent on the same month of last year.

CAAM analysts attributed the growth to higher demand for big-displacement cars at home in advance of the expected rises of consumption tax as of Sept. 1.

Spurred by the increase of big-displacement car imports, China’s total car arrivals reached 14,000 units in August, up 8.7 percent over the same month of last year, or up 26 percent over the previous months.

But August witnessed the first monthly decline over recent few years in China’s car exports, due largely to shrinking demand overseas.

The country sold abroad 44,400 motor vehicles last month, down 22.18 percent from the previous month, or 11.29 percent from a year earlier.

CAAM data showed that between January and August, China’s foreign trade value on motor vehicles and related products amounted to 56.333 billion U.S. dollars. The total included 21.983 billion dollars in import value, up 35.15 percent year-on-year, and 34.35 billion dollars in export value, up 36.5 percent.