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Car sales hit by downturn in China

Car sales hit by downturn in China
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Luxury car maker BMW has been hit by a downturn of sales in China, the world’s biggest car market.

The Munich-based company said that net profits fell to 1.75bn euros in the second quarter, down from 1.77bn euros a year earlier.

Japanese giant Toyota reported a 10 percent increase in profits for the first quarter of its fiscal year helped by the weak yen and cost cuts. But the company also saw a drop in sales in Asia.

The brake has been applied to the car market in China with the economic downturn,the fall of the Shanghai Stock Exchange and the fight against corruption applying the pressure.

The number of vehicles sold in June shrank by 3.4 percent from a year earlier while production fell by 0.7 percent.

According to the China Association of Automobile Manufacturers it is the first decline combined since December 2008.

The figures have led to a revision of forecast for growth in the market from seven to three percent for this year.