China Auto Sales to Hit 10M Units

Chinese officials said they expect domestic auto sales, spurred by a strong economy, to reach 10 million units this year, up 15 percent from last year.

While business vehicle growth has slowed, demands for passenger cars continues to be strong, Dong Yang, head of the China Association of Automobile Manufacturers told the Shanghai Daily.

Association figures showed domestic sales totaled more than 4.3 million vehicles in the first five months of this year, up 17 percent from the same period of 2007, the report said.

Speaking at an industry meeting, the official said the Chinese government will speed up restructuring the industry with emphasis on security, environment protection and energy saving, the report said.

He also noted the sharp increases in the prices of raw materials such as iron and steel were expected to reverse the trend of declining auto prices.