(Yicai Global) May 29 -- An association of Chinese automakers is holding onto its prediction of a 3 percent sales increase this year as recovery is not as quick as expected.

The China Association of Automobile Manufacturers will not adjust its forecast as demand is still weak, Chen Shihua, deputy secretary-general of the social organization, said at a meeting in Shanghai's Jiading district recently. The CAAM first announced the prediction in January.

Automobile output and sales dropped last month from March because consumers took a wait-and-see attitude due to the ongoing price wars while the commercial vehicle market did not recover as fast as expected, Chen said.

However, policy support should help. The State Council recently announced new measures to boost the economy and smooth macroeconomic conditions will further release consumer demand in the automobile market, Chen added.

From January to April, Chinese carmakers produced 8.4 million vehicles and sold 8.2 million units, up 8.6 percent and 7.1 percent, respectively, according to the CAAM. The boost was partly due to base effects as a year ago the Covid-19 pandemic weighed on sales. In fact, when compared to 2019, sales dropped this year.

Jiading district revealed some insights into its automobile industry at the meeting. The related output value rose 6 percent to CNY385.5 billion (USD54.5 billion) in 2022 from a year ago. The district is home to more than 600 car firms, including those engaged in the segments of smart connected vehicles and hydrogen vehicles.

Editors: Shi Yi, Emmi Laine, Xiao Yi