Car.jpg (Photo : Reuters)
The China Association of Automobile Manufacturers (CAAM) announced Monday that China's auto sales surpassed 23 million vehicles in 2014, but with annual growth cut in half compared to the previous year as the slower economy continues to drag down the world's largest car market.
According to CAAM, sales rose by 6.9 percent, falling short of the 8.3 percent in growth forecast in July, which in turn was further reduced from an earlier forecast of 10 percent. In comparison, sales in 2013 reached 13.9 percent, mainly due to a resurgence of Japanese brands that were earlier hit by a political row between China and Japan.
Despite the cut, CAAM described the 2014 sales as stable.
"Faced with a complex international environment and the arduous task of domestic reform, development and stability, the auto sector . . . achieved sound development," it said in a statement.
The group also sees the total sales of passenger and commercial vehicles to rise 7 percent this year, which is in line with the estimates of industry analysts. Market intelligence service provider Business Monitor International expects auto sales in China to reach 7 percent in 2015, while LMC Automotive and IHS Automotive forecast a 9-percent and 8-percent increase, respectively.
China's demand for cars have taken a hit following the country's economic growth cooling down to 7.3 percent in the July-September period, the worst quarter since the 2009 global financial crisis, as policymakers begin to roll out structural reforms in exchange for slower expansion.
Increased restrictions on car sales have also contributed to sluggish growth, with Shenzhen and other major cities imposing limits on vehicle numbers to tackle traffic congestion and worsening air pollution.
Despite the slowdown, China's car market remains dominant, with its nearest competitor--the U.S.--raking in only 16.5 million units in 2014. Foreign carmakers in China also outpaced the overall market, with General Motors, Ford, and Volkswagen reporting record sales from the past year.
