Vehicle sales and production in China dropped by double-digit figures in July month-on-month, an industry association reported, in a decline attributed mainly to power shortages and hot weather.
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According to the Associated Press (AP), the China Association of Automobile Manufacturers reported that vehicle output in July totaled 444,900 units, down 10.7% from June. It said sales of domestically made vehicles dropped 16% to 433,200 units.
Compared with the same month a year earlier, however, output was up 25.6% and sales rose 25.2%, the auto association reportedly said.
Hot weather and reduced factory hours due to electricity shortages were a key factor behind the monthly decline, the association told the Associated Press.
China’s five biggest automakers – First Automotive Works Corp., Shanghai Automotive Industry Corp. (SAIC), Dongfeng Motor Corp., Chang’an Motor Corp. and Beijing Automotive Industry Corp. – reported lower sales in July compared with June, the report said.
Sales by Chang’an, a Ford and Suzuki partner, fell the most: 46.7%, to 38,200 vehicles, AP noted.
The news agency said annual sales this year in China are expected to grow 10%, compared with 15% growth in 2004 and 75% growth in 2003.
In the first seven months of the year, sales of Chinese made cars totalled 3.22 million units, up 11.3% from the same period a year earlier, while sales of all passenger vehicles rose 14% to 2.16 million units, the industry association told the Associated Press.
