China’s auto sector saw a dramatic slide in profits in the first four months of this year, falling 57% from a year ago, due to sluggish sales, the China Daily reports.
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The sector – which includes vehicles, engines, spare parts and motorcycles – reported total profits of CNY12 billion in the January-April period, the report said, citing data from the China Association of Automobile Manufacturers.
The vehicle-making segment saw an even sharper decline in profits, dropping 74% on year to CNY4.36 billion, the report said.
Profit margins in the sector fell to less than 4% from about 9% last year, Zhu Yiping, spokeswoman of the association, said in the report.
Analysts said that declining car prices and rising costs of steel and rubber also contributed to the fall in profits, the report said.
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