China's car sales and output top 5.7 million

Both output and sales of vehicles made in China topped 5.7 million units last year, mainly due to strong passenger vehicle demand, according to an industry organization.

The nation's output in 2005 grew by 12.56 per cent to 5.71 million units on the previous year, showed statistics from the China Association of Automobile Manufacturers.

Sales of domestically made vehicles in China stood at 5.76 million units last year, a rise of 13.54 per cent.

However, the output and sales growth rates in 2005 dropped by 14.11 per cent and 15.5 per cent respectively compared to the previous period.

Vehicle output and sales in December amounted to 560,000 units and 620,900 units, climbing 6.82 per cent and 12.91 per cent respectively from November.

Output and sales last month were up 39.20 per cent and 27.44 per cent compared with the same period of 2004, according to statistics.

Both output and sales of passenger vehicles, including cars, sport utility vehicles, multi-purpose vehicles and minivans, increased more rapidly than the overall output and sales growth rates last year, according to the association.

Passenger vehicle output grew by 19.73 per cent to 3.93 million units in 2005, with sales growing by 21.40 per cent to 3.97 million units, according to statistics.

Among them, car output and sales posted the fastest growth more than 24 per cent last year.

The 2005 car sales and output reached 2.77 million units and 2.79 million units.

"The strong passenger vehicle sales last year mainly resulted from booming demand in China's second and third-tier cities," said Xu Changming, an auto industry analyst with the State Information Centre.

In contrast, both output and sales of commercial vehicles trucks and buses tumbled slightly last year from 2004, the association said.

Statistics indicated output and sales amounted to 1.78 million and 1.79 million units respectively in 2005, down 0.60 per cent and 0.75 per cent from the previous year.

A spokesperson from the association told China Daily that they believed the total sales of domestically produced vehicles in China this year would expand by 10-15 per cent to 6.4 million -6.6 million units.

In the passenger vehicle area, the five best-selling models last year were the Xiali, Hyundai Elantra, Volkswagen Santana, General Motors Buick Excelle and Volkswagen Jetta, according to the association.

Sales of the Xiali, the Chinese brand made by FAW Xiali Automobile Co Ltd a partner of Japan's Toyota Motor reached 179,700 units in 2005.

China also imported 160,000 vehicles last year, down from 175,000 units in 2004, said sources from the China Trading Centre of Automobile Imports.

Source: China Daily