China's automobile production is expected to reach 7 million units this year, according to a national industry association official, the Xinhua News Agency reported recently.
 
The predicted output represents a 22.8% increase from the 5.7 million automobiles produced last year, according to previous data issued by the national association, the China Machinery Industry Federation, whose members include large enterprises and associations from the machinery industry.

Zhang Xiaoyu, an executive vice president of the federation, said China's auto production totaled 3.89 million units in the first half of this year, up 27.8% from the same period last year, according to the report.

Zhang didn't provide the year-earlier production figure.

Of the first-half production total, passenger car output rose 53.2% from the year-earlier period to 2.1 million units, Zhang said.

Zhang said he expects auto-sector profit to reach CNY60 billion this year. He didn't give a comparison figure for last year or say whether the forecast profit was before or after tax.

In the first half of 2006, the industry's profit rose 70% from the year-earlier period thanks to a sharp decline in steel prices since the second half of last year, he said.

But profit growth over the full year will likely slow due to a rally in steel prices in the first half, Zhang added.