Domestic auto market keeps booming in May

• Source: Ce.cn
• [09:05 July 20 2009]
• Comments

Among the figures, the income decrease rate shrank by 3.41 percent, while the total profit decrease rate shrank by 20.37 percent, and industrial added value shrank by 2.49 percent. Among the 19 enterprises (groups), 8 of them have higher operation revenue over the same period of the previous year, 2 enjoyed the change from negative growth to positive growth, and 11 have lower operation revenue than last year, 8 of which have smaller decrease rate.

Among the 19, 5 achieved positive profit growth, and 10 negative, 7 of which had smaller decrease rate. With profitability turning for the better and sales volume making record high, the first 5 months of the year established the trend for the auto market to revitalize.

Judging from the statistics of the first 5 months of the year, it's not difficult to see that sedan cars and crossover passenger cars drive the rapid growth of the overall auto industry, which makes structural growth the most distinct characteristic of the first 5 months of the auto market.

Structural growth here means the obviously larger sale volume of passenger cars over business cars, with the driving force of the growth of the production and sale of passenger cars being crossover passenger cars and those that are 1.6 or lower.

It can't be denied that this characteristic of the auto market reflects that the government's policies of boosting domestic demands have become the key momentum in the growth of the production and sale of automobiles of the year. Desirable policies such as fuel oil tax reforms and halving of vehicle purchase tax have stimulated the growth certain types of car in the auto market.

CAAM believes that structural growth is a normal phenomenon in specified macro-environment. The auto market in China has entered the phase of highly marketization. Policies are more important in that they lift confidence in the market, make consumers more rational in the consumption of automobiles, and direct the development of the auto market into a healthy and orderly track.

In spite of the global economic crisis, the basics for the development of the auto industry in China remain unchanged, which means that the basis for the healthy development of China's auto market still lies in the small ownership per capita of vehicles, increasing income of the people, and the rapid development of the country's macro economy.