Steering through China’s decelerating auto sector

Overview

Although China’s auto industry will not maintain its breakneck expansion of 2009 and H1/10, we believe that demand potential and government support will produce strong growth by global standards in 2010 and a sustainable pace of growth into the coming decade. Promoting car purchases is an important part of the government’s efforts to rebalance the economy towards consumption-driven growth. However, equity investors in the automotive sector need to be aware of the differences among the...