1Q auto profits plunge

China's domestic carmakers reported collective first quarter profits of US$922.7m, diving 59% from a year ago, while auto components makers posted profits of US$489m, a 28% year-on-year decline, state media reported, citing government data. April sales among Chinese carmakers, however, rose 18.2% to 257,337 from a year ago, according to the China Automobile Manufacturers' Association. With price cuts, weak demand and rising steel prices blamed for declining profits, it is believed many carmakers will remain in the red through 2005. Tianjin FAW Xiali Automobile Co posted first quarter losses of US$4.9m, and Jinbei Automobile Co Ltd, predicted it would incul losses for the first half of the year.