According to the forecast in the latest report by the price-monitoring center of the State Development and Reform Commission, the auto-price in the market will still see a relatively big drop this year after experiencing a steady price reduction last year and it will go through the whole year.

According to the estimation of the report, the auto production and sales is expected to see a growth of some 15 percent this year and the growth of auto supply is likely to be 10 percent over the demand.

The report holds, the macro-controlled economic environment will continue to get better in China this year with the auto-production and sales in the market expected to realize a growth of around 15 percent.

Though we can't exclude the price increase factor of steel and rubber to incite a short-time auto-price fluctuation, yet the price rise won't be able to exert a big influence on the domestically manufactured auto-price on the whole. However, the price reduction still constitutes the main trend in the auto market this year.

Ever since last year, it has witnessed a "big drop" of the prices for many types of autos and this was followed with the increase of wait-and-see buyers with money in hand.

The report reminds consumers, the Chinese auto industry tells a high unit auto-profit with a big space for price reduction. According to the statistics, the international transnational auto-groups tell a gross profit rate of 10 �C 15 percent in general. But in the first half of last year though the Chinese auto-price witnessed a big reduction with the ceaseless lowering of the profit for manufacturers the gross profit rate for enterprises still remained at a high level of 22.6 percent.

The report pointed out, the Chinese auto-market after a blowout demand increase of two years the spot consumption has already obtained a full release and the Chinese auto-market is now in a transition from higher growth to a steady growth. According to the estimation the auto-supply growth this year is likely to be 10 percent over the demand and it will see an obvious tendency of the supply over the demand. With the market competition becoming serious it will see a continuous drop of the auto-price.

By People's Daily Online