Challenges ahead

China's auto sales, having surged about fivefold in a decade, may expand 5 percent next year as a cooling economy damps spending in the world's second-largest vehicle market, according to Honda Motor Co.

"It's going to be very challenging," Atsuyoshi Hyogo, the auto maker's China head, told reporters in Guangzhou yesterday. Industry-wide vehicle sales may reach 9.4 million this year, he added. Slower Chinese sales may hurt Honda, Toyota Motor Corp and General Motors Corp, which are counting on growth in emerging markets to offset plunging demand in the United States, Japan and Europe.