As in the USA, auto sales in China still are brisk even as the economy shows worrisome cracks.
While prices are down some in China, there was an even bigger sales incentive in June than any rebate: There was a rush to get wheels before local governments limit new car registrations to try to get a handle on snarled traffic.
While reports out this week showed China's economic growth overall has slowed significantly to about 7%, car sales in June rose 9% to 1.58 million, the Associated Press reports, citing data from the China Automobile Manufacturers Association, a government-sanctioned industry group.
June sales were driven by concern about registration limits in several cities, as well as by price cuts, Zhang Xin, an industry analyst at Guotai Jun'an Securities in Beijing, told the AP.
Guangzhou, near Hong Kong, set limits that took effect July 1. "There is a rumor that more cities such as Shenzhen, Dalian, Hangzhou and so on will also release a policy to limit car purchases by clamping down on vehicle registrations," Zhang said.
What happens in China, the world's biggest auto market, reverberates around the world with automakers -- including General Motors, Ford and Fiat/Chrysler in the U.S. All are looking to China as a major part of their growth plans, particularly as Europe sinks, with no solution in sight.
