July 31st, 2006 at 7:19 am
The car industry in China kept a very fast growth in the first six months of 2006. Both the output and sale were over 3.5 million, and car prices have been going down steadily.
There was a great leap in the car market from January to April, and the sales volume achieved in March even broke the monthly record. However, it suddenly went down in May and June due to rising oil prices, which contributed to more reasonable prices of cars in the domestic market. In fact, the average price of cars had already dropped by 2.4% in the first six months, even allowing for the price rebound caused by the modification in tax and import policies.
The downturn of the car market in the second half of 2006 is unavoidable, said experts, although it will not be a drastic one. With the improvement in macro-economy and supply and the relation between supply and demand, car prices will steadily go down, experts estimated.
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