CHINA'S passenger vehicle prices fell the most in about two years in May because of a worsening glut at auto dealerships.

Average retail price in May fell 1.1 percent from April, the steepest sequential drop since June 2010, Cheng Xiaodong, head of auto-price monitoring at the National Development and Reform Commission, said yesterday. Automakers are overstocking cars at a time when dealers are pessimistic about their sales prospects, he said.

The deepening price drops add to signs that Chinese consumer demand for cars is lagging behind the rising wholesale vehicle deliveries that automakers are reporting.

Source:shanghaidaily