OREANDA-NEWS. Fitch Ratings says in its latest EMEA Automotive Dashboard that slower new car sales growth in China should not have any direct and immediate impact on European auto manufacturers' ratings. European auto manufacturers have flexibility in their ratings and we had already factored in a slower new car sales growth in China in our projections and rating cases.

The dashboard highlights current sector themes such as the slower growth rates, pricing development and dividend payouts from Chinese JVs.

Fitch believes that the long-term growth potential for new vehicle sales in China is intact and that growth will recover to mid-single digit rates over the medium-term. Fitch also believes that such growth rates remain healthy and should be viewed against the high volume base, with the total market now above 20 million units sold annually, more than double versus 2008 levels. The recent yuan devaluation should also have limited impact given the already high and growing share of local production.

A complete review of these topics including a review of the dashboard is available at www.fitchratings.com or by clicking the link above.

The EMEA Automotive Dashboard is published semi-annually.