China auto sales on the rise

Passenger car sales to dealerships in China are rising despite the ailing health of the wider economy, Financial Times reported. According to statistics released by the China Association of Automobile Manufacturers (CAAM), car sales to dealerships were up 7.1% in the first half of 2012 while June sales alone were up 15.8%, compared with the same periods last year. While analysts say that increasing car sales reflect sound consumer demand, CAAM points out that mounting sales to dealerships are not necessarily translating to higher sales to end-consumers as inventories have also been on the rise. Nevertheless, CAAM predicted that the Chinese car market, the largest in the world, will continue to be strong, predicting annual growth of 5-8%.