China’s domestic auto sales set to grow

China’s domestic auto sales set to grow

China’s domestic automobile sales are expected to grow 15 percent to hit 10 million units this year, backed by strong demand for passenger cars, an official with the China Association of Automobile Manufacturers said on Saturday.

China’s fast-growing economy has created a sound environment for the development of the automobile industry, Dong Yang, vice chairman of the association, said at an industry meeting held in the coastal city of Yantai in eastern Shandong Province.

Despite slower growth in business vehicles sales, demand for passenger cars remained robust, he said.

The government will speed up restructuring the industry by detailing standards on security, environment protection and energy saving, Dong said.

He noted the declining trend in auto prices will be reversed as a result of the sharp rise in prices of raw materials such as iron and steel.

The association’s latest data showed that more than 4.3 million vehicles were sold in the first five months of this year, a jump of 17 percent from the same period last year.