China expects auto sales growth to slow
BEIJING: China will continue to boost its auto sector in 2010, but expects sales to grow more slowly after overtaking the US as the world's largest auto market last year, state media reported Saturday.
The Ministry of Commerce is forecasting this year's auto sales will rise more than 10 percent from 2009 to more than 15 million units, the China Daily reported.
"We are still confident of sales for 2010, as the government's policy to stimulate consumption at all levels will continue. But the robust growth momentum of last year cannot be sustained," Chang Xiaochun, a senior ministry official was quoted as saying.
"Double-digit growth is not a difficult goal."
Car sales in China grew 46.2 percent on year in 2009 with 13.65 million units sold, according to official figures.
That contrasted with the United States where sales fell 21.2 percent to 10.43 million vehicles in 2009, according to Autodata figures.
Beijing helped the sector with incentives including slashing taxes on cars with engines smaller than 1.6 litres and subsidising clean-technology vehicles. The government also subsidised auto purchases for farmers.