Chinese automotive sales are still growing, but at the lowest rate in the past 19 months as demand cools.
Bloomberg reports sales in September rose 2.5 percent to 1.98 million units compared to what they were in 2013, marking the lowest rise in sales since February of last year. While passenger-car sales climbed 6.4 percent to 1.7 million units, commercial-vehicle sales fell 16 percent.
Meanwhile, purchase restrictions and declines in other parts of the nation’s economy also contributed to the slowdown in sales. The China Association of Automobile Manufacturers lowered its 2014 forecast of vehicle sales growth in July, bringing it down from 10 percent to 8.3 percent. Economists add that overall growth will slow to 7.3 percent in 2014 — the lowest rate since 1990 — and 7 percent for 2015.
Don’t worry.
For those who enjoy ‘western’ standards there in China (a few couples of 100milions), purchasing a car is still 6 times more expensive for the salary as compared with Europre I’ve been told (today.)
And fuelling it is 8 times more expensive on the same comparison ground… I’ve been told the same.
And the car market there is growing a solid two-digits pace (that’s Official.)
Don’t panic.
Is it possible to get a breakdown of the Chinese vehicle market?
It would be interesting to see what they are buying.
Thanks.
It is a coincidence for me that this article is illustrated by a bus photo. I just discovered (see busnews.com.au) that both Higer and King Long are now exporting fully built buses and coaches to Australia at half the cost of local, custom built buses. They install Cummins diesels, made in the UK and sometimes even use European chassis from Scania or MAN but also make their own. It looks like the pending demise of another local industry. So sad.
Your Free Trade Agreements at work.