Vehicle sales in China decrease

Vehicle sales in China decrease

Vehicle sales in China decrease

Electric vehicles will make up a third of that.

Total auto sales in the world's biggest auto market fell 0.1% in December from the same month a year earlier, the China Association of Automobile Manufacturers (CAAM) said.

The other two largest global vehicle markets, Europe and the U.S., also saw constant or falling fossil sales in 2019, according to the initial trend we saw in 2018.

Forecasters expect sales to level off this year, but that would be more than 3 million units below 2017's peak of 24.7 million.

The automakers' association says sales will likely fall again this year by about 2 percent.

Sales dropped 6.9% in August from the same month in the prior year, according to industry figures.

2019 sales of electric and gasoline-electric hybrid sedans and SUVs sank 4% over a year earlier to 1.2 million.

China's market for automobiles grew for decades but over the past year-and-a-half, it has contracted due to an economic downturn that has dented consumer demand and tighter emissions standards that hurt auto makers and dealers. But Beijing slammed on the brakes previous year, slashing subsidies for buyers. Regulators shifted the burden of promoting the technology to automakers by imposing mandatory sales targets.

Limits on foreign ownership are to be removed from the whole auto industry by next year. It's Ford China 2.0 plan also calls for the localizing of management teams by hiring more Chinese staff and aimed to improve relationships with joint venture partners.

In 2018, sales declined 2.8%, halting a growth march that started in the 1990s.

Ford has been trying to revive sales in China after its business began slumping in late 2017.

Volkswagen AG said 2019 sales rose 1.7 percent to 3.2 million, edging past GM to claim at least temporarily the status of China's biggest auto brand.

Anning Chen, president and chief executive of Ford Greater China, described 2019 as "challenging", however, he pointed to strong gains by its Lincoln luxury brand and narrowing losses by its other brands in the final six months of 2019 as promising signs for 2020. In the fourth quarter of 2019, Ford's sales dropped 14.7%.

But it remained cautious about 2020, echoing bearish comments about sales in China from General Motors Co.

"The easing of trade tensions between China and the United States has also helped restore consumer confidence", said Kang, who expects China auto sales to grow 0.05% this year.

The company sold a total of 567,854 vehicles in 2019.

Related news



[an error occurred while processing the directive]