Car sales, output slump in October

Car sales and production both slumped in October after two months of consecutive growth, figures from the China Association of Automobile Manufacturers showed. In total China's car industry produced 374,300 units in October and sold 404,700 units, a drop of 14.47% and 7.83% respectively from September. The fall came after figures for September showed a growth in output of 15.93% on the previous month and sales up 14.37%. A spokeswoman for the auto association said the decline in output was due to manufacturers cutting back production to ease high inventories coupled with the week-long October national holiday. For the 10 months to October accumulated vehicle output and sales grew by 17.58% and 17.59% respectively year-on-year. Analysts say factors such as the government's controls on car loans and interest rate hikes, skyrocketing oil prices and consumers' expectations of fresh price cuts in the new year are all driving down demand.