China Is Taking A Brake
China’s car market will take it easy and grow only 3 to 5 percent this year after surging 32 percent to more than 18 million last year. This is the prediction of China’s State Information Center, as reported by Bloomberg.
“The third quarter may be better than the second as September and October are traditionally hot seasons for auto sales but I don’t expect a big improvement,” the center’s Research Director Xu Changming Xu said. Xu’s forecast jibes with the estimates of the China Association of Automobile Manufacturers CAAM which had revised its outlook to about 5 percent in July.
Worried about inflationary tendencies, the Chinese government is pushing the brake pedal after accelerating growth the last two years.