China's auto industry posted a 63.87% profit growth year-on-year to reach 22.004 billion yuan during the January-August 2006 period, outpacing the sector’s 29.87% growth in sales revenue. The figures, reversing a decline in CAAM members’ profitability since 2004 as volumes increased and steel prices softened, were released yesterday by the China Association of Automobile Manufacturers. Chang'an, a Ford JV partner, and Xiali, both doubled their net profits in the nine months ending September.

Inventory growth slowed, ending in August with a year-on-year rise of 12.44%, 4.29 percentage points lower than in July, and 97.4% of the cars produced in the eight months have been sold.

Chinese truck exports in the first eight months of this year rose 52.2% to reach 95,600 vehicles worth US$604 million. Passenger vehicle exports reached 14,400 units worth US$296 million. China imported 165,000, US$5.43 billion-worth, of vehicles during January-September, a total which was up 43.2% by volume and 55.4% by value year on year, according to the latest data from China’s General Administration of Customs (GAC).

Imports included 78,000 cars and 65,000 light utilities. Imports from Europe and the United States totalled 88,000 units, compared with 49,000 units from Japan and 26,000 from the Republic of Korea.