Vehicle demand 'peaked in first quarter'

Lending, currency and policy converge to lower consumer confidence

China's automotive market remains volatile. Speculation that strong sales in March were just building dealer inventories appears to be well founded. In April, light vehicle sales totaled 1.44 million units, 12 percent lower than the previous month, though still up 34 percent year on year.

Passenger vehicle sales rose 34 percent to 950,000 units. Small cars, ranging from minis to compacts, underperformed larger models, a result thought to be skewed by the inventory situation. Meanwhile, the midsize car, SUV and MPV segments maintained strong growth despite an increase in fuel prices.