For China's auto market, the euphoria of high sales seems to be fading.
Auto sales across the nation totaled 1.267 million units in February, up 4.57 percent year on year, said the China Association of Automobile Manufacturers (CAAM). But the figure represented a 33.1-percent drop from January. The February output also fell 29.9 percent month on month to 1.26 million units.
CAAM attributed the downturn to the impact of the Lunar New Year holiday (February 2-8), end of policy incentives and new limits on car purchases in Beijing.
The government this year rolled back some supportive policies, including a favorable purchase tax for smaller cars, subsidies to rural buyers and an old car replacement program.
"I'm not surprised at the February data. But there's no need to be overly pessimistic about prospect of the market," said Xiong Chuanlin, Deputy Secretary General of CAAM.
After two years of vibrant growth, the market is more likely to plateau, said Xiong.
In addition, auto exports reached 43,400 units in February, down 16.51 percent from January, said the CAAM. But it still represented a 63.56 percent growth year on year. |