China issue automotive market stimulus policies in second half of 2011

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Dong Yang, the vice chairman and secretary general of China Association of Automobile Manufacturers (CAAM), said at an industry information release that CAAM has revised the growth forecast from 10-15% down to 5%, which will be a good chance for the auto market to regain ration.

He also said he hopes the automakers to learn how to develop under a market environment without stimulus policies, and hopes the concerned policies can keep stable. It means it’s unlikely for the government to issue incentive policies in the second half of this year.

According to the statistics from CAAM, China’s auto sales in the first half of this year totaled 9,325,200 units, up 3.35% from a year earlier, down 29 percentage points from the same period of last year. The sales of passenger vehicles in the period hit 7,110,300 units, up 5.75% from a year earlier, while the sales of commercial vehicles decreased 3.67% from a year earlier to 2,214,900 units.

Although the auto market in June growth from a year earlier and a month earlier, CAAM believes the unfavorable factors that had impacted the industry development in the first half of this year will still exist, and the overall environment won’t be improved greatly in a short period.