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China lowers forecast for sedan production
(Agencies)
Updated: 2004-09-15 14:17

After months of sluggish sedan sales, China's National Bureau of Statistics on Wednesday lowered its forecast for local sedan production this year to 2.39 million units from 2.82 million units.

In August, sedan production reached 169,600 units, up 1.5 percent from August 2003, but down 0.5 percent from July, the bureau said in a statement posted on its Web site.

In the first eight months of this year, sedan production was 1.58 million units, up 25.4 percent compared with the same period of 2003, it said.

The statistics bureau said that slowing production in July and August resulted in more than 30 percent of sedan production capacity being left unused.

While sedan production and sales are stabilizing at around 170,000 units a month, many auto makers prefer to gain market share by cutting car prices, rather than reducing output, the report said.

Many auto makers will find it difficult to meet their original annual production and sales targets, it said.

Auto sales have slowed since banks were ordered to control soaring lending, including loans for car purchases.

The statistics bureau didn't provide data for sedan sales. Earlier this month, the Economic Information Daily, citing the China Association of Automobile Manufacturers, reported August sedan sales at around 170,000 units, close to July sales. In the first eight months of this year, sedan sales stood at 1.51 million units, the report said.



 
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