SHANGHAI, Sept 7 — China’s vehicle sales exceeded 1 million units in August for the sixth straight month helped by Beijing’s policy initiatives, the state-owned Xinhua news agency said today.
There should be no problem for the country’s vehicle sales to exceed 10 million units this year, for the first time, as combined sales in the first seven months have reached 7.18 million units, Xinhua said, citing Zhu Yiping, a spokeswoman from the China Association of Automobile Manufacturers.
The auto association is scheduled to announce China’s August car sales data later this week.
Meanwhile, Chen Bin, chief director of the industry coordination department at China’s top economic planner, urged automakers to “keep their heads cool” to prevent overcapacity.
China’s planned total vehicle capacity will be much higher than demand and if that goes on uncontained, the country’s auto capacity utilisation rate will be lower than 70 per cent in the coming years, Chen was quoted as saying when addressing an industry forum.
He did not provide the country’s existing auto capacity or its utilisation rate.
Chen also warned that it remained unclear whether auto sales growth in the country can be sustained in the long term, as the explosive growth this year is mainly helped by government policy initiatives, he added. — Reuters
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