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Bloomberg
Chinese auto sales fell in September for the 15th month in 16, extending their unprecedented slump despite government efforts to support the world’s largest car market.
Sales of sedans, sport utility vehicles, minivans and multipurpose vehicles dropped 6.6% from a year earlier to 1.81 million units, the China Passenger Car Association (PCA) said. The only increase since mid-2018 came in June, when dealers offered big discounts to clear inventory.
The market has been hurt by a slowing economy and stricter emission rules, prompting the government to urge local authorities to boost consumption. Measures included easing car purchase curbs put in place to reduce pollution and traffic jams, though there’s not been much impact yet. The China Association of Automobile Manufacturers (CAAM) forecasts vehicle deliveries to dealers in 2019 will fall for the second time in three decades.
Sales of new energy vehicles — all-electric, fuel-celled autos and plugin hybrids — dropped for a third-straight month, tumbling 33% after the government scaled back incentives for purchases of such cars. CAAM reported similar drops.
Local brands, which had previously dominated the segment, began to lose their grip as foreign joint ventures won market share. Particularly with plugin hybrids, joint-venture brands surged 80% in September while local brands slumped 60%, according to PCA.