Data released by China Association of Automobile Manufacturers recently show that from January to September, the production and sales volume of vehicle in China was 7.3131 million sets and 7.2292 million sets respectively, increasing by 12.35 percent and 11.94 percent year on year. China has been maintaining an increase rate higher than 20 percent for nearly ten consecutive years, which slides to a dozen percent this year. At the same time, the production and sales growth is continuing slowing down; China's auto market is registering a characteristic of entering into a new round of adjustment.

Statistic data from China Association of Auto Manufacturers indicates that in the first quarter, both the production and sales volume of vehicles exceeded 2.5 million sets, in which the sales volume grew by 21.42 percent year on year. The passenger vehicle market is stable on the whole, with the sales volume amounting to 1.8511 million sets and increasing by 20.41 percent year on year. The sales volume of commercial vehicle was 0.7267 million sets, rising by 24.06 percent than the same period of last year. The auto market at the beginning of 2008 has as it were an encouraging start.

When the first half of 2008 passed, the accumulative production and sales volume of vehicle both exceeded 5 million, climbing by 16.71 percent and 18.52 percent respectively. CAAM commented, "The increase slowed down gently than the same period of last year. But as far as the growth of the first half year is concerned, it still maintained a high speed". The "gently slow down" mentioned in the comments was mainly manifested by the growth rate of production and sales volume in the first half year, which was 5.65 percent and 4.78 percent lower respectively year on year. In which the growth of passenger vehicle production and sales volume was 4.89 percent and 5.19 percent lower than the same period of last year.

But in the third quarter, the auto market saw an obvious decline in July and August and rallied in September. In July, the production and sales of vehicle appeared month-to-month decrease for the first time, the production and sales volume was 0.732 million and 0.6658 million sets respectively, down by 12.57 percent and 20.43 percent month-to-month and up by 11.13 percent and 3.88 percent year on year. In August, both the production and sales showed year on year decrease for the first time, the production and sales volume was 0.6155 million and 0.629 million respectively, declining by 3.5 percent and 6.34 percent year on year. In September, the vehicle production volume was 0.7647 million, increasing by 24.24 percent month to month and 1.02 percent year on year; the sales volume was 0.7515 percent, increasing by 19.48 percent month to month and declining by 2.74 percent year on year.

From January to September, the production and sales volume of vehicle was 7.3131 million and 7.2292 million sets respectively, increasing by 12.35 percent and 11.94 percent year on year. The production volume of passenger vehicle was 5.188 million and 5.1032 million sets separately, going up by 12.29 percent and 11.36 percent year on year; the production and sales volume of commercial vehicle was 2.1252 million and 2.126 million sets separately, growing by 12.48 percent and 13.35 percent year on year.

We can see from the statistic data of the first three quarters that domestic auto industry has been confronted with lots of difficulties this year. It is very difficult to keep a 20 percent higher increase rate of production and sales volume. According to the production and sales volume curve of the first nine months, experts predict that domestic auto market will maintain a relatively moderate growth in the future.

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Tags: Auto Adjustment Period