China's March car sales surge 63% year on year

09 April 2010 10:34  [Source: ICIS news]

SINGAPORE (ICIS news)--China’s car sales in March surged 63% year on year to 1.26m units, representing a continuation of the strong annual growth in automobile sales registered in February, based on official industry data released on Friday.

In February, the country's car sales totaled 942,900 cars, up 55% from the same period a year earlier, according to the China Association of Automobile Manufacturers (CAAM).

The strong car sales in China was the same trend seen in the US and Europe.

But actual car demand in China may not be as strong as the growth numbers suggested, given the low base last year, industry sources said.

“The February or even March and April figures may show a big jump in sales but they are not [a] very accurate [gauge] of demand here due to the global [economic] crisis in the beginning of last year,” said a China-based synthetic butadiene rubber (SBR) producer.

Full-year car sales in China would likely post a more moderate annual growth of 20% year on year to 15m units, according to industry sources.

“The growth figures such as that seen in February will not last long as the year progresses,” said one China-based tyre maker.

The automotive industry is a very important end-user market for a wide array of chemical products, particularly synthetic rubbers, which are used in manufacturing car tyres.

Among other chemicals, polycarbonates are increasingly being used to replace glass in cars, while nylons are being used as substitutes for metal parts in automobiles.

($1 = €0.75)

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By: Nurluqman Suratman

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