China's Auto Industry looking to slow down in 2008

The market is beginning to heat up in terms of competition--and while that is a good thing for consumers, for profits of car sales in the Chinese sector, it does not favor well for bottom lines. Combined with energy prices as well as raw materials--and of course towering oil prices--translate into larger overhead for the auto makers and therefore will cut well into profits.

This is not really surprising news overall for the consistently booming auto industry. On a large scale, China's stock market has been increasingly sluggish, so it's not as if anyone is really going to escape that swoon in the short term. So, for 2008, the industry will definitely be down. But that doesn't mean losses--it just means that the sales will slooooooooow overall.

It also means that for the law of supply and demand, that consumers will be so delighted that with auto makers assuming that the sales would be comparable to 2007, they stocked production in the same manner, which will therefore lower prices.

( Add your comments )

Recent Entries:
· 2011 Ford Explorer
· Honda Announces Mileage Marathon Winner
· Cadillac Converj is GM's next electric car

[ READER COMMENTS ]

China's Auto Industry looking to slow down in 2008

Add your comments...

We kindly ask that you keep your comments relevant to this blog entry. Abusive or inappropriate comments or comments that are specifically promotional in nature may be removed.