BEIJING, July 8 China's main automobile industry
body has cut its growth forecast for vehicles sales in 2011 to 5
percent, from 10-15 percent, citing weaker demand after the
withdrawal of state subsidies.
The revised sales forecast for the world's top auto market
was announced on Friday by Dong Yang, secretary general of the
China Association of Automobile Manufacturers.
Vehicles sales have suffered since Beijing started scaling
back incentives for buyers in 2010, and scrapped them entirely
at the end of last year to stabilise the market.
The incentives had included tax incentives for small cars
and subsidies for farmers who traded in old, gas-guzzling
vehicles for more fuel-efficient models.
(Reporting by Fang Yan; Editing by Chris Lewis)