Gu Jia/Shanghai Daily news

A record high distribution in March could not ease the 60 percent loss of profits in the domestic Auto sector in the first quarter of 2005, according to a recent survey by the China Association of Automobile Manufacturers.
The survey was conducted among 5,962 auto dealers nationwide, including last year's three key money-losing enterprises: Jinbei, Nanjing Auto and Changhe Group.
The participations of FAW Group and Soueast Motor in the red ink category this year has resulted in a deficit of 3649 million yuan (US$419.47 million), up 118.38 percent, in domestic auto industry.
The number of autos produced in the first three months was 1 309 500, up by 0.87 percent, but sales were 1 266 900, down 1.16 percent, from the previous year.
When the continuing reductions in auto prices and the increasing expenses for raw and processed materials, a lower and lower economic index for the home auto industry is the only outcome.