Auto group revises sales forecast for China’s automotive market

The China Association of Automobile Manufacturers has revised its sales forecasts for the country’s automobile sales from 10-15% growth to 5% in 2011. The association said its revised forecaset is due to the withdrawal of state incentives, resulting in slowing demand for new cars. The subsidies that have been withdrawn in an effort to stabilize the automotive market included tax incentives for small cars and subsidies for farmers to upgrade their vehicles. (July 8, 2011)