The chief of a Chinese auto industry body has predicted that the world’s largest auto market – China – could face a slowing sales increase this year because of an equally dwindling overall economy.
According to Dong Yang, secretary general of the China Association of Automobile Manufacturers (CAAM), who was speaking to reporters on the sidelines of an industry gathering in Shanghai, the delivery increase would be of 7% in 2014, a 50% drop from the figure registered last year.
“Personally, I think growth this year can reach 7 percent,” said Dong. “The economy is slowing. The auto industry would reflect that but typically lags the economic cycle by a bit.”
Although the secretary has predicted the 7% increase, so far the association has slashed its official forecast for China’s auto market to an 8.3% increase over the tally registered in 2013. Data coming from the CAAM seems to support Dong’s view so far, with nine-month sales increasing 7% from the same timeframe last year. So far, Volkswagen and General Motors are vying for the sales crown – both companies expecting record sales this year.
When it comes to the overall Chinese economy, the second largest in the world, the growth pace has slid to 7.3% for the three months period of the third quarter, after it stood at 7.5% the quarter before.