Signs are surfacing that the tepid auto market is recovering its strength, though uncertainties still loom large.
Auto sales across the nation totaled 1.65 million units in September, up 5.52 percent from a year ago, said the China Association of Automobile Manufacturers (CAAM). Output in September stood at 1.6 million units, a modest increase of 0.37 percent.
The September figure brought sales for the first three quarters of this year to 13.63 million units, growing 3.62 percent year on year. The output from January to September amounted to 13.46 million units, up 2.75 percent.
The once-sizzling auto market turned lackluster after the government canceled favorable purchase taxes for smaller cars and put new limits on car purchases in Beijing.
"The sales rebound in September as buyers rushed to showrooms before the government tightened up its subsidy policy on October 1," said Fu Yongchong, a senior analyst with the Datong Securities Co. Ltd. The government has announced an adjustment of its subsidy policies for energy-efficient cars, making many models ineligible for the incentives.
"As a result, the sales growth may drop in months to come, and the industry will continue to suffer from the negative impact of incentive withdrawal." he said.
Still, Dong Yang, Secretary General of the CAAM, expected sales to grow at least 3 percent this year, saying that the fourth quarter is usually a peak season for the auto market. |