BYD cuts auto sales target by 25%

Shenzhen-based car maker BYD (1211.HK), backed by US billionaire Warren Buffett, has cut its sales forecast for 2010 by 25%, amid concerns that demand in the world’s largest auto market is cooling off, the Financial Times reported. The company originally set its 2010 sales target at 800,000 cars, but said on Wednesday it now aims to sell 600,000 because of capacity constraints. Sales of passenger cars in China rose 15.4% in July from a year earlier, an increase from June’s 10.9% growth but a steep fall from May’s 25% rise. The China Automotive Technology and Research Centre has also warned that growth could slow further in August as carmakers cut production during the summer. China overtook the US as the world’s largest auto market last year, but in 2010 analysts expect growth to fall to about 15-20%.