China: auto forecast revised again for 2014 image

Following the slowing growth registered in recent months, the world’s largest auto market is on pace to miss a prediction for the year, as the pace of delivery increases has cooled.

The country’s main auto industry body said that because of a smaller increase for the world’s second-biggest economy, consumer demand has followed the trend and auto sales cooled significantly in August and September. The state-backed China Association of Automobile Manufacturers announced, through Dong Yang, its secretary general, that the previously revised forecast is unlikely to be met.

“There was an obvious slowdown in auto sales in August and September,” said Dong. “It looks like China’s auto sales this year won’t hit 24 million units mark,” he added. “It should be no problem for it to reach 23 million units instead.”

According to the association, the new forecast is for sales of 23 million units, a rise of 4.6% from the figures of 2013. The new forecast comes after the body revised in July its initial January prediction. The revised forecast was lowered to 23.83 million vehicles (8.3% climb) from the initial 10% climb.

After China was the first country in the world that surpassed annual sales of 20 million autos, the growth has slowed down mainly because of a large slump in commercial vehicle deliveries.

Via Bloomberg