By Wang Qing　

Date: 2004/08/17

Abstract:

In the first half of the year,production of cars in China is growing steadily with a declining sales record. Under this background, since the second quarter of the year, supply has exceeded demand and this trend will continue. In the meantime, comprehensive price index of cars falls to 93.45 by the end of the second quarter. As predicted, the total output of cars will increase by 33% year-on-year, and sales in the second half of the year is expected to grow by 30% on an annual base; the supply will exceed demand. When inventory is piling up under a tighter competition, together with the lowering of tariff, the general price index of cars will fall further by 3% and stay at 90.5 by the end of the year.