Although China's auto industry witnessed its output and sales volume continue to grow in 2005, its profits dropped, according to figures released by the Ministry of Commerce Wednesday.
In 2005 the total profit of China's 6,315 auto enterprises reached 52.62 billion yuan (US$6.6 billion), down 24.33 percent year on year, figures show.
In the year, the industrial output of these 6,315 enterprises amounted to 1.193 trillion yuan (US$150 billion), up 8.6 percent year on year.
The sales revenue of these enterprises amounted to 1.19 trillion yuan, up 10.65 percent year on year.
Although China's auto consumption demand is still expanding, its speed is lower than the production capacity growth, leading to more heated competition and a low profit rate, insiders said.
(Xinhua News Agency February 23, 2006)
