Is the over-heated Chinese car market finally showing signs of cooling down? And if so, will the Beijing government yet again intervene to keep the momentum building?
Now the world’s largest national automotive market, China’s car sales have been growing at a torrid pace, volume during the first quarter of 2010 rising at an annual rate of 72%. But while April sales were yet again up 34% compared to year-earlier numbers, they actually fell 12% when compared to March 2009.
“China’s automotive market remains volatile,” suggests a new report from J.D. Power and Associates.
And even the strong first quarter, it notes, may contain some potentially troubling signs once the numbers are parsed more closely. Much of the growth, especially in March, appears to simply be the result of dealers rebuilding inventories after 2009.