Photo: thinkquest.org
Automakers see the drop in Chinese demand this year as being something of a blip, as the market is nowhere near saturation right now. But there are indications the auto bubble has indeed burst.
The Chinese rubber stockpiles are increasing, and this has also been shown in a price drop of the raw material on the Qingdao International Rubber Exchange Market, according to Bloomberg News. The futures contracts that help predict the price of rubber are now half of what they were on a February 2011 high, indicating that the market is no longer destabilized by high growth expectations.
According to the Chinese Association of Automobile Manufacturers, sales dropped in the first four months of the year by 1.3 percent, the biggest decline since 1998.
According to the Chinese Association of Automobile Manufacturers, sales dropped in the first four months of the year by 1.3 percent, the biggest decline since 1998.
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