Joint venture automakers see slower growth in Chinese market next year

As industry experts forecast China will overtake the U.S. as the world's largest auto market by 2015, and figures show that vehicle sales in China rose 25% this year, some joint venture automakers lowered the growth forecast for 2008.

Last week, Honda Motor unveiled its sales plan in Chinese market for next year. It aims to sell 490,000 vehicles, up 17% from the year 2007. The growth rate is much smaller as the company's 29% increase this year.

This is indeed a modest expectation considering that Honda will launch its much-expected 2008 Accord sedan in Chinese market next week.

Chen Binbo, deputy director of Dongfeng Nissan's sales department said the joint venture sales growth may be slowed next year. He expected the overall market to grow by less than 20% for next year.

"The overall market may not grow as fast as the past years," said Feng Xingya, deputy general manager of Guangzhou Toyota. He predicted a moderate growth for the industry, but "there may some exceptions"

Observers say that new fuel tax policy, stricter emission standards, along with tightening macro-economic policies from the government could prevent the auto industry from growing fast next year.