In the first quarter of 2012, auto sales fell 1.2% in China. In the 11 months to November 2011, auto sales increased a trepid 2.6% year-over-year to 16.8 million units, down from a staggering 30.0% and 50.0% growth in 2010 and 2009, respectively.
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New York, NY (PRWEB) July 12, 2012
The key to China’s economic progress will be the rapid growth of the country’s middle class, according to George Leong, contributor to Profit Confidential. An area in China that Leong continues to believe has tremendous long-term potential is the auto sector.
In the article “Auto Sector Growth Slows in China, but Market Still Massive,” Leong states that he has been a big supporter of the Chinese auto sector, but sales have been slowing as the government eliminated credits for fuel-efficient cars in 2011 and, in trying to ease the traffic congestion on Chinese highways, set a quota on vehicles sold.
“The slowing is quite evident,” reports Leong. “In the first quarter of 2012, auto sales fell 1.2% in China. In the 11 months to November 2011, auto sales increased a trepid 2.6% year-over-year to 16.8 million units, down from a staggering 30.0% and 50.0% growth in 2010 and 2009, respectively.”
Yet Leong notes there are some positives for the foreign carmakers operating in China.
“Sales of foreign vehicles continue to top the charts, while the domestic brands fell 2.3% for the first 11 months of 2011, representing only around 33.0% of total sales in the period,” says Leong.
The Profit Confidential contributor believes that the world’s automakers need to have a presence in China’s auto sector, whether in a venture with a Chinese company or as a standalone manufacturer of vehicles.
“The auto sector is currently in flux, but companies need to be there,” argues Leong.
Leong states that GM is the top auto seller in China, reporting that GM, along with its Chinese partners, sold a record 2.5 million vehicles in 2011, which was well above its U.S. sales.
“There is clearly some slowing in the Chinese auto market, but I view dips as an opportunity to buy for those with a longer-term view,” concludes Leong.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.