The Hindu Business Line

China car sales shrink fur­ther, adding to au­tomak­ers’ woes

- BLOOMBERG Business · Cars · Consumer Goods · China

China’s au­to­mo­bile de­liv­er­ies con­tin­ued to shrink last month, ex­tend­ing the mar­kets his­toric de­cline.

“Sales of sedans, sport util­ity ve­hi­cles, mini­vans and multi-pur­pose ve­hi­cles in July fell 3.9 per cent from a year ear­lier to 1.53 mil­lion units,” said the China As­so­ci­a­tion of Au­to­mo­bile Man­u­fac­tur­ers on Mon­day.

The first car slump in a gen­er­a­tion is show­ing no signs of eas­ing as the Chi­nese econ­omy faces a slow­down and stricter emis­sions rules and the trade war weigh on de­mand. Car­mak­ers that re­lied on the world’s largest auto mar­ket for growth for decades, pour­ing bil­lions of dol­lars into the coun­try, are now left ques­tion­ing fu­ture in­vest­ment de­ci­sions.

Re­tail sales of cars in China fell for the 13th con­sec­u­tive time in the past 14 months in July, plung­ing 5.3 per cent, the China Pas­sen­ger Car As­so­ci­a­tion said.

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