China January Auto Sales Down image

A recent report stated that January 2012 auto sales in China have been a bit of an off note with very poor sales.

According to China Association of Automobile Manufacturers statistics, shows that China produced and sold 2.9 units in January and 2.95 units in February, translating in a year-on-year decrease of 4.93% and 5.96%. Among those, production and sales numbers of passenger automobiles over the two months were 2.32 million and 2.37 million units, respectively 1.68 percent and 4.37 percent less than in 2011. But auto inventories continue to grow.

The main reason for this sale decrease is the fact that disputes in North Africa and the Middle East continue, the price of oil continues to increase, having topped $110 per barrel at the end of last month. This inevitably put pressure on prospective consumers. The sales of small cars fell 6.9% in the last two months with 1.15 units, while the sales of own brand automobiles fell a full 11.5 percent, finishing at 1.01 million units.

February brought a slight recovery due to the fact that there were 21 working days. Microvan sales maintain positive growth since there is a relatively high amount of agricultural workers embarking on new enterprises.