January auto price growth rate hits 4-year high
Prices of domestically produced vehicles increased by 2.38 percent compared with the previous month, or 1.34 percent year on year, marking the highest monthly growth rate since 2006, according to data released by the price monitoring center under the National Development and Reform Commission (NDRC).
The price hike was the result of inadequate supplies, noted Chen Xiaodong, an expert with the center. "Auto prices may stay at a relatively high level."
Car producers have benefited from the upward trend of auto prices and are looking forward to larger profits, as prices keep rising, but prices of raw materials remained low.
In 2009, China's 17 key auto companies realized 1.51 trillion yuan (221.12 billion U.S. dollars) of revenues, up 30 percent year on year.
Luxury car brands are also experiencing growth. Mercedes-Benz, BMW, Audi and Porsche all witnessed more than double sales in January, 2010.
China's luxury auto market will hit 450,000 units in 2010, estimated a high executive from a luxury auto producer, expressing his feeling of optimism.
"With the steady growth of China's economy and rising national income, luxury cars will have larger market in the future," he said.
