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Chinese auto export growth slows

Beijing, 110808. China's vehicle export growth slowed in the first half on economic controls and natural disasters, stoking concerns about overcapacity in the world's second- largest auto market.

Exports rose 59 per cent to 388,000 vehicles after almost doubling a year earlier, Fu Peizhao, deputy secretary general of Department II for the Machinery Industry at the China Chamber of Commerce for the Import & Export of Machinery & Electronic Products, said in an interview.

Growth slowed after snowstorms and an earthquake disrupted production.

Carmakers are boosting exports as investments totaling at least $20 billion by General Motors Corp., Toyota Motor Corp. and other overseas automakers have caused a rising stockpile of unsold vehicles and falling domestic prices.

"It is inevitable that automakers will turn to overseas markets to make better use of their capacity," Fu said. Auto plants are working at about 70 per cent of capacity, he said.

China's exports of completed trucks rose 46 per cent in the first half to 151,500, Fu said. Car exports doubled to 133,000. Automakers in China sold vehicles to 193 countries and regions in the first half of the year, with Russia the largest market.

China suffered severe snowstorms January to February, followed by its deadliest earthquake in 32 years in May.

Source: Driving.ca.