| China's
auto industry posted a 63.87 percent profit growth year-on-year to reach 22.004
billion yuan during January-August period, outpacing the 29.87 percent growth
in sales revenue. Latest
figures released Thursday by the China Association of Automobile Manufacturers
show that the auto industry ended profit declines it had experienced since 2004.
The turning
point comes as domestic demand for automobiles surged while steel prices dipped,
say industry insiders. Encouraged
by hefty demand, inventory growth slowed, ending August, with a year-on-year rise
of 12.44 percent, 4.29 percentage points lower than a month earlier. Exports
of commercial vehicles also nurtured the industry. Truck exports in the first
eight months jumped 52.2 percent to reach 95,600 vehicles worth 604 million U.S.
dollars. Passenger bus exports reached 14,400 units worth 296 million US.dollars.
Up to 97.4
percent of the automobiles produced in the past eight months have been sold, industry
figures showed Automakers
Chang'an and Xiali report they have doubled net profits in the nine months ending
September. Researchers
warn, however, that oversupply could still plague the industry, which also faces
the prospect of rising steel prices. The future of the auto sector remains complex,
they say.
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