It is reported that Chongqing Changan Automobile reported a 23.89%YoY decrease in net profit to CNY 1.04 billion in the first half of 2011. Sales revenue in the same period fell 12.57%YoY to CNY 14.54 billion.

Changan Automobile reported a 5%YoY decrease in auto sales to 925,000 units in the first six months. The company blamed the falling net profit on lower sales volume, higher raw material prices and a lower gross margin. Changan Automobile subsidiaries also delayed launching new vehicle brands in light of a waning micro-passenger bus market.

According to the China Association of Automobile Manufacturers, China recorded 83.39%YoY growth in vehicle sales in 2009. The figure fell to 27.77% in 2010. There are 14 micro-passenger vehicle producers in China, with total production capacity of 7.5 million units. Industry statistics estimate maximum market demand was only 2.5 million units, however.

(Sourced from China Business News)