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Auto sales continue sinking in China, more promotions ahead
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It's been months of bad sales in China's auto market despite the occasional seasonal boost.

It's been months of bad sales in China's auto market despite the occasional seasonal boost. 



One window-shopper said "I just dropped by to check out the prices."

Customers are not buying because they think cars will get even cheaper if they wait. Industry experts are blaming other factors such as months of declines in the equities markets.

Du Fangci, Assistant Secretary-General of China Association of Automobile Manufacturers said "The sluggish stock market is putting a big damper on auto sales."

And dealers say the only way to boost sales is to cut prices. But some car dealers say they are not likely to offer any further discounts for the year.

One car dealer said "We just lowered the prices during the National Day holiday."

Su Hui, GM of North Star Yuyuncun Car Trade Market said "Competition in the fourth quarter will be tougher, especially around the end of the year when there will be more promotions. That's because dealers will be under pressure to achieve their sales targets."

And with the thought of more promotions ahead, it's no surprise that customers are just happy to sit tight and wait.

(CCTV October 22, 2008)

 

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