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Chinese auto market growth will slow to 5% this year, CAAM says

Chinese auto market growth will slow to 5% this year, CAAM says

China’s vehicle sales will probably rise just 5 percent in 2014, missing a revised growth forecast for the year as demand slows, according to China Association of Automobile Manufacturers, the country’s main auto association.

Dong Yang, secretary general of the state-backed China Association of Automobile Manufacturers, said total passenger and commercial vehicle sales for the full year would likely hit 23 million units.

In July, the group lowered its projection for the increase in China vehicle sales to 8 percent, down from the 10 percent increase it predicted in January.

“There was an obvious slowdown in auto sales in August and September,” Dong said in an interview at a forum in Beijing. “We are looking into the exact reasons causing this so I don’t want to elaborate on the factors at the moment.”

Demand for commercial vehicles has slumped this year as growth slows in the world’s largest auto market. The Chinese government has signaled that it would tolerate a weaker expansion pace and refrain from broad stimulus this year, with the country headed for the slowest full-year growth since 1990, based on forecasts by analysts Bloomberg surveyed.

China last year became the first country to see annual domestic vehicle sales surpass 20 million units.