Nissan Motor Co, Japan’s n2 automaker after Toyota Motor Corp. said on Tuesday that auto demand is slowing in China’s coastal regions, Reuters reports.
Car sales in China climbed 5.2 percent in 2011, the slowest pace since the nation’s car culture took off at the turn of the century, as consumers shunned local brands after Beijing scrapped tax incentives for small cars.
Chinese demand for passenger and commercial vehicles from January to April fell 1.3 percent, the worst four-month start to a year since 1998, according to data from the China Association of Automobile Manufacturers.
Macquarie analysts last month said they cut Chinese auto sales growth estimates for this year to 3.3 percent from 7.8 percent, citing “subdued” consumer sentiment and “ongoing risk to exports.”
On the same time, China Machinery Industry Federation says the domestic engineering industry has witnessed slow growth in the first four months of this year.
“The growth rate of production and sales in the first four months were 12.1% and 11.45% respectively.
Although the increase has achieved double-digit growth, but the growth rate was above 25% for the past 10 consecutive years. The economic returns for machinery companies have experienced a slowing down as well, with a growth rate of 6.7%, down from 20% in 2011.”
Also, despite the increase in new orders, backlogs of work in the Chinese service sector continued to fall during May. While the sector grew, the rate of growth fell.