Strong rise in China's auto sales
(Reuters)Updated: 2007-02-07 14:44
SHANGHAI -- Profits of China's automobile industry rose 46 percent in 2006 from a year earlier, the first increase in three years, thanks to substantial growth in the fast-growing car market.
 Enthusiastic Chinese consumers bought a total of 5.18 million cars in 2006. [Getty] |
Combined profit of auto parts suppliers, vehicle and motorcycle makers amounted to 76.8 billion yuan ($9.9 billion) last yeat, data provided by the China Association of Automobile Manufacturers revealed.
That compared with a 24.3 percent profit fall in 2005, and a 5.2 percent drop the previous year, the newspaper said.
Industry analysts attributed the profit rise last year to a jump in car sales, as auto makers rolled out new models at break-neck speed to attract buyers.
A total of 5.18 million cars were sold in China in 2006, up 30.02 percent, compared with a 21.4 percent rise in 2005, according to official figures.
However, market growth this year is expected to slow to 15 to 20 percent as fewer new models become available, analysts said.
China, once an easy profit center providing global giants with double-digit margins, has become one of the industry's most intense battlegrounds as Toyota Motor, General Motors and the likes invest billions of dollars to ramp up capacity.
Still, many industry players, such as Ford Motor, had projected continuous strong growth for the year. The US automaker, a relative newcomer in China, saw its sales jump 86.6 percent to 166,722 vehicles in 2006.
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