Chinese car sales growth is vulnerable in the wake of a predicted global economic decline, it has been claimed.

JD Power and Associates has suggested that car sales growth in the Asian country could fall sharply in the event of a world-wide economic downturn, the Financial Times reports.

The automotive consultancy has already revised its projections for Chinese passenger vehicle sales this year from 5.95 million to 5.8 million.

This would equate to a 6.7 per cent rise on last year's figures, which is in stark contrast to the annual growth rate of 24 per cent recorded in 2007.

JD Power and Associates' concerns are based on a poll of Chinese car dealers, who have noted a drop in sales over the last two months.

"September and October are normally very strong months," Michael Dunne, JD Power's managing director for China, told the Financial Times.

"This convinces us that there's real softness in the market, and that it's sustained."

Earlier this year, JD Power and Associates predicted that Asia Pacific would overtake Europe as the world's largest regional automotive market by the end of next year.

Source:

China's car sales boom runs out of steam, 15/10/08

http://www.ft.com/cms/s/0/5df0acbc-9a51-11dd-bfe2-000077b07658.html?nclick_check=1