(…) The Pre-warning Index of China Automotive Industry, an important indicator reflecting the climate of the sector, moved into the "Yellow Zone" to 133.3 points, up 16.6 points from the last quarter of 2009 and has risen for the fourth quarter in a row.

imageIndustry insiders said the figures is a sign that the automotive industry is starting to overheat, the Beijing Times reported.

However, Pan Jiancheng, deputy director of the China Economic Monitoring Center of the NBS, said that despite a reading in the "Yellow Zone" the figures showed the country’s automotive industry is rebounding, not overheating, due to low base numbers in the same period of last year as a result of the world financial crisis.

The Dealer Manager Index, which shows the car dealers’ perception of the current market situation as well as their anticipations about the future, dropped below 100 points for the first time in history (97.9 points), 19.5 points lower than that of the previous quarter, showing that they are not optimistic about future market trends. (…)

Pan said the cooling down of the auto market in March and April would be good for the health of the industry (…).

The Entrepreneur Expectation Index, which reflects carmakers’ perception of the current market situation and their anticipations about the future, fell 10.7 points from the previous quarter to 115.6 points. A measure above 100 points indicates that entrepreneurs are basically satisfied with the current market status and are still optimistic about the overall market operation in the future.

Full China Daily article


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