CHINA'S auto sales rebounded for a second straight month after their worst two-month start since 2005 set a bearish note for this year's growth.

Despite record-high fuel prices, the auto sales, including passenger cars and commercial vehicles, rose 5.2 percent from a year earlier to 1.6 million units in April, according to a report released by the China Association of Automobile Manufacturers yesterday.

The year-on-year growth rate in April was 4.17 percentage points higher than that of March, but the sales figure fell 11.7 percent on a monthly basis.

Deliveries of passenger automobiles, including multi-purpose and sport-utility vehicles, jumped 12.5 percent on an annual basis to 1.3 million units, but this was 8.9 percent lower from March.

Rao Da, secretary-general of the Joint Advisory Committee of China Passenger Car Market, said the monthly fall was caused by seasonal factors rather than record-high retail gasoline and diesel prices seen at the end of March.

He claimed that the annual increase in sales pointed to the auto market on the road to recovery.

Ye Sheng, auto research director at market research company IPSOS, echoed Rao's view by saying the market will rebound further, especially after the third quarter. He based his outlook on historical data.

"The record-high fuel prices might have delayed car purchases but could hardly change the decision (to buy)," Ye said. "The demand for cars is still there, particularly in lower-tier markets."

Source:shanghaidaily.com