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China’s Automobile Market Saw a 9.6 Percent Decline in June

Well-known Chinese news site Sina recently reported that, according to the China Association of Automobile Manufacturers (CAAM), China’s domestic automobile market suffered a year-over-year decline of 9.6 percent. In the first half of 2019, the total automobile sales saw a year-over-year decline of 12.4 percent. CAAM expressed its belief that the full year outcome may turn out to show a negative growth. The Chinese automobile market has already suffered 12-consecutive-months of decline. The year 2018 was the first year in 28 years that the industry had a negative growth rate. The numbers showed that passenger cars had a better sales performance than commercial vehicles. The month of June showed that mid-duty commercial trucks had a year-over-year decline of 39 percent. CAAM called for a government intervention to stimulate consumer spending. Also in 2019, the government is expected to reduce the subsidy for new-energy vehicles by 70 percent. Even with the previous high subsidy, the new-energy vehicle profit margin remains very low, far less than for conventional vehicles.

Source: Sina, July 11, 2019