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Home >> Business
UPDATED: 10:04, April 10, 2005
Experts uncertain about continuing auto sales recovery
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Auto experts said they are uncertain whether auto sales will continue to increase although sales were high in March.

The increase of 72.79 percent in March is partly due to unsurprisingly low February sales, which are usually brought down by the Chinese Spring Festival.

March always witnesses sales growth, so this year's 2.48 percent increase compared with the previous year was not a significant jump. Sales in the first three months of this year have not been impressive, though in the last week, sales grew sharply, said Jiang Xueqing, an expert with the Yangtze River Securities Research Institution.

Jiang said the increase in sales at the end of March might be connected with the releasing of quarterly reports. In order to make reports more encouraging, some companies release stored cars to dealers at the last minute.

Zhang Xin, an expert from the Guotai Junan Research Institution agreed with Jiang. She said a new sales management method implemented April 1 also places big influence on auto sales. According to the method, if dealers do not perform well, manufacturers can cancel their further obligation to sell.

This year will be a reconstructing year for the Chinese auto market which will last until 2006, said Zhang Yuxian, an expert with the State Information Center.

Jiang agreed growth in sedan sales will be lower than last year. Zhang added China's auto market is still growing fast, in comparison to the sluggish international market. As current competitiveness shifts from low-priced products to middle and high-class products, auto sale profits are expected to further shrink.


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