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Domestic carmakers falling on hard times

Updated: 2011-11-28 14:51

(chinadaily.com.cn)

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The 2011 China (Guangzhou) International Automobile Exhibition has been relatively calm for domestic manufacturers this year, with few major industry bosses attending. With the implementation of various vehicle restriction policies and the phasing out of preferential purchase policies since the beginning of the year, the market as a whole has begun to contract significantly, resulting in decreased interest for Chinese vehicles as a whole.

According to statistics from the China Association of Automobile Manufacturers, domestic vehicle sales in October have decreased 1.99 percent, while sales in the first ten months of the year have fallen 1.8 percent. Chinese brands only hold 31.1 percent of the market overall. Manufacturers, such as Geely and Chery, have not been releasing new models at the same pace they have before.

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