The slowdown in the automotive industry in China

automotive industry

Chinese auto sales dipped drastically in September for the 15th month in 16, extending their worst collapse in a generation despite government efforts to support and sustain the world’s largest car market.

Sales of sedans, minivans and multipurpose vehicles and sport utility vehicles fell by 6.6 percent from a year earlier to 1.81 million units, the China Passenger Car Association wrote in a declaration displayed on its official WeChat account. The only rise since mid-2018 came in June when dealers gave large discounts to clear inventory.

The market has been hurt by a decelerating economy and harsher emission rules, prompting the government to urge push local authorities to boost consumption. Measures comprised of easing car purchase restrictions put in place to reduce pollution and traffic jams, though there have not been many effects yet. The China Association of Automobile Manufacturers predicts a drop in vehicle deliveries to dealers in 2019, only the second annual decline in three decades.

General Motors Co. stated that third-quarter deliveries of its vehicles in China reduced from 18 percent from the same period in 2018, whilst local manufacturer BYD Co. stated its September sales fell 15 percent from the previous year.

The market isn’t completely glum. Honda Motor Co. said its China sales rose 4 percent on-year in September and Geely Automobile Holdings Ltd. stated a 12 percent increase from August, although the figure was still down 15 percent from a year earlier. Luxury products are also seeing some development, though various haven’t proclaimed sales for September.

 

 

Shreyas Tanna

About Shreyas Tanna

The winner of Mr. Pune 2009 Pageant, Mr. Shreyas Tanna is currently the young, dashing, and dynamic CEO of a market research company called Research N Reports in Pune. Fondly known as RNR, the company specializes in market research as well as industry analysis, and is closely associated with its parent company Absolute Markets Insights (AMI). Mr. Shreyas Tanna began his corporate journey as the Head of Corporate sales & PR at RED Entertainment while pursuing his degree for MMS (Marketing) from the MGM College of Management, Mumbai. After accomplishing the tedious task of balancing his work and education, he further polished his skills in Corporate Sales, Public Relations, Channel Development, Global Client Engagement, Strategic Consulting, and Brand Development by working with HDFC Life and ResearchMoz Global Pvt. Ltd. His dedication towards his work has even won him accolades such as the National Level Performer 2013 – HDFC Life and Mr. ResearchMoz 2015. A disciplined individual with a loving heart, he is often seen taking crisp walks with an engrossed look and a gentle smile within the premises of his company to interact with the various departments. And he will be usually followed by an adorable trail of his beloved trio of Shih Tzu babies proudly known as Gucci, Drake, and Paris. The most enticing thing that you will notice about this content and proud pet parent is his infectious positivity and the firm belief in his eyes, a reflection of his favorite quote, “LIFE IS BEAUTIFUL!”

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