China Posts 6.7% Increase in Auto Sales

Sales growth in China's automobile industry slowed to 6.7% in 2008, ending at least 5 years of double-digit growth, data from a semiofficial industry group showed recently. Passenger vehicle sales grew 7.3% to 6.76 M units last year, the China Assn. of Automobile Manufacturers said, without giving the year-earlier figure. Sales of commercial vehicles rose 5.3% to 2.62M units, the group said. Following 21.8% growth in 2007, 2008 started off with robust double-digit monthly sales increases in the first half of the year. But as the global economic slowdown impacted China, auto sales fell 11.6% in Dec. to 741,600 units, the group said. Passenger vehicle sales for the month fell 8% to 584,600 units, and sales of commercial vehicles in Dec. dropped 23% to 157,000 units. The slowdown resulted in weaker sales for some automobile makers in China. GM posted a 7% decline in 2008 sales at Shanghai General Motors, its flagship passenger vehicle joint venture. Ford also posted a 5.9% decline in 2008 sales at its passenger vehicle joint venture, Changan Ford Mazda Automobile Co. Including sales at its commercial vehicle joint venture with Jiangling Motors Corp., Ford sold 306,306 units in China last year. Volkswagen AG retained its position as the top-selling passenger vehicle maker in China last year, with group sales up 12.5% at 1,024,008 units. Volkswagen-branded sales vehicles grew 8.2% while sales of vehicles under Audi brand name rose 17.3%. Toyota's sales in China rose 17% last year to 585,000 units, while Honda's sales rose 11.7% to 473,297 units. Chery Automobile Co. sold 356,000 units in 2008, down 6.56% from a year earlier.