Slowing economy, high fuel costs dent China car market

SHANGHAI (Reuters) – China’s car market, the world’s second largest, is losing speed more quickly than expected due to a slowing economy, rising fuel prices and natural disasters, raising the prospect that sales growth could halve this year.

Growing by at least 20 percent a year for the past three years, China has been one of the few bright spots for General Motors Corp (GM.N: Quote, Profile, Research) and other global auto giants as they struggle with a slump in U.S. and European markets.

But sales growth in July slowed to a single-digit rate for the first time in two years. This may be the shape of things to come, even with a renewed focus on growth by China’s economic policy makers.

“It’s slowing down more than we anticipated,” said John Bonnell, director of J.D. Power Asia Pacific Forecasting.

Reuters UK