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Car sales in China declined for a fifth consecutive month, bringing the world’s largest market closer to its first annual drop in at least two decades and piling pressure on carmakers that have relied on the country for growth.
Retail sales of sedans, multi-purpose vehicles and sport utility vehicles dropped 13.2% to 1.98 million units last month, the China Passenger Car Association said on Thursday.
Sales in the first ten months of 2018 fell 2.5% to 18.4 million units.
Key insights
This ups the pressure on automakers already pinning flagging profits and weaker sales growth on the pullback in China.
Even Volkswagen, the top carmaker by sales volume there, cut its China forecast as the trade war hits the economy and demand for big-ticket consumer items like cars.
A slump in China - where automakers poured in billions of dollars in the past 20 years to bulk up factories - leaves the industry struggling to find growth anywhere on the planet.
Sales in the US and Europe are waning as the rising popularity of car-sharing and ride-hailing services is reducing the need for individuals to buy vehicles.
The slowdown coincides with China’s new emission rules that force carmakers to boost spending on electrified vehicles to avoid penalties. Spending requirements are further exacerbated by a seismic shift in the industry toward self-driving features and fully autonomous cars.
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