China Car Sales Up 8%

China’s annual passenger car sales grew in October after falling for two straight months, official data showed November 6, but analysts doubt it means a solid rebound as consumption slows along with economic growth.

A total of 538,500 cars were sold in October, up 8% from a year earlier, the China Association of Automobile Manufacturers said.
The rebound comes after car sales fell 1.5% in September and 6% in August, rare declines in the world’s fastest growing major market as natural disasters, the Olympics and a slowing economy kept buyers from showrooms.
‘That is by no means a sign of market recovery,’ said Chen Qiaoning, an industry analyst with ABN AMRO TEDA Fund Management. ‘8% is nothing compared to explosive growth in the past years.’
The prospect of a major recovery is slim due to the uncertainties facing the country’s economy, other analysts said.
Car sales in China totalled 5.64 million from January to October, up 11% from a year earlier, the association said. Growth in the past three years had exceeded 20%.