CCTV.com - CNTV English - CCTV News

China's auto market faces stockpiles

08-10-2010 09:06 BJT

Watch Video

Play Video

Slowing car sales are creating headaches for auto dealers around the country, who are faced with mounting stockpiles. But as CCTV reporter finds out, analysts regard weakening demand as a healthy sign.

In the eastern Chinese city of Nanjing, auto dealers are feeling the pressure from increasing stockpiles of unsold cars.

Chen Lin, Assistant Manager of Jiangsu Yutian Guanghong said "Auto sales so far this year have declined slightly from a year ago. This was mainly due to the strong sales last year. The rapid expansion last year stimulated manufacturers to increase production. This in turn pushed up our stockpiles. Now the decreased sales have created a lot of pressure on us."

Car dealers in the southern city of Guangzhou are also facing a similar dilemma. Many have embarked on promotional efforts to attract customers and boost sales.

One car dealer said "Prices of many models have dropped by 8-thousand yuan. We will also offer an additional service package worth 8-thousand yuan. This was never seen last year."

But consumers are still holding back. They expect prices to drop further by the end of the year, as manufacturers hurry to clear stockpiles. The slowing economy and the scale-back of massive government stimulus measures, including car-buying incentives, are also weighing in their decisions.

Mr. Qiu, potential car buyer said "I will wait for the government's incentives to be more progressed before making a purchase. And I will focus more on home-grown sales rather than imported ones."

China's auto sales for 2009 reached around 13.6 million units, with the country surpassing the U.S. as the world's top auto market.

Some analysts say weakened demand is actually healthy, as last year's stimulus measures may have created false hopes for the future.

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program