From Asia Times Online:
China’s car market in 2005 is forecast to be marked by slowdown in output and sales, growth of big enterprises, increase of export of complete vehicles and a total reshuffle of the sector. China’s car sales dropped greatly in 2004 while concentration of car production and sales improved; sales of economy and medium-grade cars increased but sales of high-grade cars declined. As a whole, profits of the automotive sector dropped.
As the forecasts for the 2004 auto market were proved wrong again and again, industry experts, auto makers and dealers are wary of making forecasts for 2005. But all of them seem to expect that market demand will increase 10-15% this year and the auto industry will face a reshuffle of enterprises, especially at the distribution end.
