The Strategist

China expects car sales to fall by 8% in 2019


12/12/2019 - 09:47



Car sales in the country will fall by around 8% in 2019, marking the second annual decline for the world's largest auto market, the Chinese Association of Automobile Manufacturers (CAAM) predicts.



Kuruman
Kuruman
Last year, a decline of about 3% was recorded, which was the first since nineties.

The expected steep fall came as a surprise for the industry participants, who back in 2018 predicted that the sales would change just slightly.

The car market was affected by the slowdown in China's economic growth, as well as the effects of a trade war between Washington and Beijing.

In addition, sales figures were influenced by the fact that new emission standards were introduced ahead of schedule set by the central government in 15 cities and provinces of China.

According to CAAM, car sales in China in November fell 3.6% year on year to 2.46 million units.

In October, sales in the world's largest automotive market fell by 4%, a month earlier a decrease of 5.2% was recorded.

The recession in the Chinese market is affecting automakers around the world, leaving them less room for growth, while sales in the US and EUrope have also fallen.

The industry plagued by trade tensions also faces competition from taxi and car sharing services, because of which people don't need to buy cars anymore.

source: bloomberg.com