China’s auto sector continues its decline this year
May 14, 2019 (China Knowledge) - Sales in China’s auto sector continue declining in the first four months of 2019 with passenger vehicles sales falling by 12% to 6.6 million according to latest figures from the China Passenger Car Association (CPCA).
Last year, China’s auto market posted its first annual decline in nearly three decades with passenger car sales falling by 6% to 22.7 million units for the year.
The decline has prompted the Chinese government to roll out new supportive policies aimed to prop up sales this year. According to a document by the National Development and Reform Commission (NDRC), the state planner highlighted promoting car sales in rural areas as a major avenue towards stemming the country’s economic slowdown.
Despite these policies, which include a 3% cut to corporate value-added tax which should have a direct impact on auto manufacturers, there has yet to be a significant impact on the sector.
SAIC Motor Corp, the country’s largest auto group reported a 16.8% drop year-on-year to 2 million vehicles sold during the first 4 months this year while Chongqing Changan Automobile Co. also saw sales decline by 35% to 441,000 units during the period.
Increased tariffs between US and China which include automobiles and auto parts will place further pressure on the auto sector this year, with auto sales expected to remain largely flat this year.
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