March Auto Sales Edge Up 1% in China

Carmakers sold 1.84 million new passenger and commercial vehicles in China last month compared with 1.82 million units in March 2011, according to the China Assn. of Automobile Manufacturers.

Sales of cars, SUVs and minivans rose 4% to 1.4 million units in March. Prices of locally made cars fell nearly 2% year over year in March, says the National Development and Reform Commission. But demand for commercial vehicles fell 7% to 440,000 units.

In the first quarter of 2012, total vehicle sales slid 3% year over year to 4.8 million units. Demand for passenger vehicles dipped 2% to 3.4 million vehicles, the first drop in seven years. Analysts attribute the decline to the country's cooling economic growth, higher fuel prices and restrictions on urban car ownership.

Some major foreign automakers reported stronger first-quarter sales in China, including General Motors (+9% to a record 745,200 units) and Toyota (+2% to 211,500). But sales fell 14% to 121,400 vehicles at Ford and 11% to 148,100 units at Honda.

CAAM says it will observe the market for another quarter before deciding whether to change its full-year forecast. The group currently predicts total vehicle sales this year will increase 8% to 20 million units. Chinese government officials have said they expect growth to fall short of that goal.