China car mkt unlikely to sustain breakneck growth

TIANJIN, Sept 4 (BestGrowthStock) – China’s car market will
continue to grow this year but may not sustain the breakneck
pace of last year, the chief executive of Ford Motor’s (F.N: )
China car venture said on Saturday.

“Overall this year versus last year, there will still be
growth. First quarter and second quarter were good and we see
some slowdown in the third quarter,” Jeffrey Shen told Reuters
on the sidelines of an industry event in the northern
municipality of Tianjin.

“But that’s nothing major. There is no market that can
continue to have 40, 50 percent growth.”

China, which eclipsed the United States as the world’s
largest auto market last year, has been a major bright spot as
the global industry struggles to recover from a steep downturn.

Car sales started to show signs of a slowdown beginning
from the second quarter on economic worries, but bounced back
strongly in August due largely to government subsidies on
fuel-efficient cars. [ID:nTOE67N03X].

The up-turn in demand could extend into September and
October, the best auto sales season, and may continue into the
winter months if automakers slash prices to drive sales, some
industry observers have said.

But Shen, also the president of Ford’s three-way tie with
Mazda Motor (7261.T: ) and Chongqing Changan Automobile
(000625.SZ: ), disagreed.

“Personally I believe quarter three, quarter four there
will still be growth, but I don’t think there will be 60
percent growth,” he said, adding he maintained his previous
forecast for 15-25 percent expansion of the Chinese car market
in 2010.
(Reporting by Fang Yan and Ken Wills; Editing by Sugita
Katyal)

China car mkt unlikely to sustain breakneck growth