Chinese Automotive Sales Down by 13 Percent in October
At the end of October, just over 2 million vehicles were sold in China, demonstrating the economic hardships that the Chinese market is facing
China is currently one of the fastest-growing markets in the automotive world. However, recent sales trends suggest that growth is starting to slow down and, in some cases, recede.
Chinese automotive sales were down by 13 percent in October.
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By the end of the month, a total of just over 2 million SUVs, sedans, and minivans were purchased by Chinese drivers. That’s a significant loss in sales compared to a year ago.
Sales are also on a decline so far this year, with a slight sales loss of 1 percent. Overall, 19.3 million vehicles were purchased by the Chinese public during the first ten months of 2018.
While a slight 1 percent sales loss may not seem bad, it is well below expectations for where sales were projected to be by this point. At the beginning of the year, analysts expected growth in the mid-single digits for China’s automotive market.
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Several factors are contributing to this loss in sales. Late last year, the Chinese government clamped down on bank lending in response to a debt boom.
That alone would be enough to affect sales. However, China is also facing a growing trade war with the United States, staring down several tariffs. Analysts warn that if the negative economic environment does not improve, more Chinese drivers may opt out of buying a new car.
Chinese automotive brands are being affected the most by these lost sales. October sales of Chinese-brand SUVs shrunk to 498,000 units, a loss of 21.8 percent.
Of course, international brands like GM are also experiencing sales losses in China. As China is the largest market for brands like Buick and Cadillac, this can create some serious problems for the automakers.
There is a sales-based silver lining. Sales for hybrids and EVs in China rose 51 percent for a total of 138,000 units.
Still, the Chinese auto market can’re rely on EVs and hybrids alone. If economic conditions don’t improve soon, automakers will have to initiate different plans and policies for this influential sector of the international market.
News Source: AP News