“China’s passenger-vehicle sales rose at a slower pace in May as consumer confidence waned amid signs that momentum for economic growth is slowing.
Wholesale deliveries of cars, multipurpose and sport utility vehicles increased 9 percent to 1.4 million units in May, according to the state-backed China Association of Automobile Manufacturers yesterday. That compares with growth of 13 percent in April and 13.3 percent in March.
The slowing auto-sales growth follows data showing average inventory levels at dealerships rose in April. Government reports yesterday showed trade, inflation and lending in May all trailed estimates, signaling weaker domestic demand that adds pressure on Premier Li Keqiang to shore up economic growth.
“Strong inventory building in the first four months of 2013 and a softer GDP in 2Q13 lead us to expect gradually slower sales growth for the rest of the year,” Ole Hui, a Hong Kong-based analyst with Mizuho Financial Group Inc. (8411), wrote in a research note on June 6.
Total sales of vehicles, including buses and trucks, gained 9.8 percent to 1.76 million units last month, the association said. Growth in motor vehicle output slowed to 15.7 percent year-on-year in May from 18.3 percent in April, National Bureau of Statistics data released yesterday showed.
Vehicle sales for the first half are expected to be between 10 million and 11 million units, CAAM Secretary General Dong Yang said at a briefing yesterday. He said there’s no overcapacity in China’s auto industry.
