China: Car market could fall by 8% this year

According to a media report, car sales in China could fall by 8% this year to 26 million units.

In 2018, car sales fell by 3% to around 28 million units. In July 2019, China Association of Automobile Manufacturers predicted a 5% decline in 2019, but the figure has now been revised to 8%. Monthly sales have fallen for the 15th consecutive month. Due to subsidy cuts, sales of New Energy Vehicles (NEV) fell by 16% (year-on-year) in August and 34% in September.

The report suggests that the sales have fallen due to higher production standards, slowing economic growth and tighter vehicle emission norms.

General Motors, Ford and Peugeot have reported double digit percentage sales decline. Suzuki has become the first big foreign car maker to shut up shop in the country.

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