Along with the new highest record in history of the volume of domestic automobile production and sales created for three consecutive months, the automobile industry has further improved as a whole. On 8th May, China Association of Automobile Manufacturers (CAAM) adjusted the domestic automobile production and sales target of this year up to 10.2 million, with an increase of about 0.35 million compared to that of the beginning of the year and a year-on-year growth from 5% of the beginning of the year up to 8%.

The latest statistics of CAAM show that, after the single-month sales record of 1.11 million created in March, in April the domestic automobile production and sales hit a new record.

1.1568 million vehicles were produced, with a sequential growth rate of 5.61%; 1.1531 million vehicles were sold, with a sequential growth rate of 3.91%.

According to the new situation, CAAM adjusted the automobile sales projection of 2009 up to 10.20 million, with a year-on-year growth of 8%. However, Dongyang, the Deputy Secretary-General, said: “It is still difficult to reach the target of 8% growth. We hope that the Government will continue to introduce policies and implement the purchase tax cut policy for commercial vehicles with “poor sales volume”.

According to analysis, the main reason for the sales record-breaking in April still lies in the zymotic efficiency after the adjustment of industrial policy. The car models which benefit from preferential purchase tax policy has been growing steadily for 4 months. 0.419 million cars of 1.6L and below and 0.172 million cross-type vehicles were sold, with a year-on-year growth of 56.5% and 70.7% respectively.

According to statistics, in the last four months, SAIC has been far ahead of peers with a sales volume of 0.7689 million, followed by FAW and Dongfeng with a sales volume of 0.5273 million and 0.4998 million respectively. Chang’an Automobile and Beijing Automobile were at the fourth and fifth place, with a sales volume of 0.4278 million and 0.3660 million respectively.

However, as smaller cars are the main force for the growth, automotive companies still have great production but poor harvest. The profit data of 19 key enterprises lately issued by CAAM show that, in the first quarter of 2009, 19 enterprises’ operating income was RMB 268.6 Billion Yuan, with a year-on-year decrease of 14.2%; total profit was RMB10.8 Billion Yuan, with a year-on-year decrease of 48.36%.