Moving People

News

/ News / Article

  • BBC News

China car sales fall for the first time in 20 years


Car sales in China, the world's biggest vehicle market, have seen their first annual fall in twenty years.

Sales fell 6% to 22.7 million units in 2018, according to the China Passenger Car Association (CPCA).

The deceleration comes amid a slowdown in China's economy which has hit performance at car manufacturers around the world.

The news comes after Apple warned that sales would be hit by slowing iPhone demand in China.

Meanwhile, the country's most successful carmaker, Geely, is forecasting flat sales this year.

Foreign car makers such as Ford, Volkswagen, Jaguar Land Rover and General Motors have all reported falls in sales over the last few months in China.

The China Association of Automobile Manufacturers (CAAM), a government-backed industry group, last month blamed the sales slowdown on economic shifts and "international reasons", referring to China's trade war with the US.

Last year, both countries imposed billions of dollars' worth of tariffs on each other's goods.

CAAM said it expected the market to be unchanged in 2019 and added that although demand for diesel and petrol cars was falling, rising sales of electric cars would probably help the overall market to avoid another slump.

Government subsidies for car buying also ended last year reducing consumer incentives to buy new cars.

However, the China National Development and Reform Commission (NDRC) says it plans to introduce policies to boost consumer spending on cars as well as home appliances.

NDRC vice-chairman Ning Jizhe told China's state broadcaster that there was still potential for more car sales. He said policies such as the introduction of a rural car purchase programme, or a cut in taxes on car sales could help drive sales.


1 view
construction-image1.jpg

Subscribe and keep up to date with all the latest news from Oakmark

Subtle Shapes Transparent
WEST AFRICA'S NO.1 ECONOMIC AGENTS

Oakmark Global Vision provides a bespoke business package to established corporate bodies, investors, and entrepreneurs who desire to enter the West & Pan African market. Find out more >

© 2021 Oakmark Global Vision Ltd - All Rights Reserved.

UK Company No. 07634879 / Nigeria Company No. RC 1288232

Regional Office

International Office

1 Kandi Close, Off Aminu Kano

Crescent, Wuse 2, Abuja F.C.T

Nigeria 

+234 -(0)- 929 207 02

+234 (0) 704 497 6500

info@oakmarkglobalvision.com

King Court, 17 School Road

Hall Green, Birmingham

United Kingdom  B28, 8JG

+44 (0) 121 244 1814

+44 (0) 746 625 2505

info@oakmarkglobalvision.com

 Oakmark Global Vision Limited