Mazda is the latest OEM to voice concern over the implications for the auto industry of China’s economic slowdown.
According to Reuters, Mazda has said it is concerned overcapacity may force automakers to offer more buying incentives and even sell at a loss later this year.
“The rate of growth is stalling… On top of that is the stock market fall. Consumers are mentally chilled,” said Masahiro Moro, Mazda’s managing executive officer and head of global marketing. “Up to now it’s been growth and growth,” he told reporters.
Masahiro Moro also told reporters that the Chinese car market will decline in the second half of this year.
Car demand has slowed in China due to a combination of moderating economic growth, caps on vehicle registrations in some cities and falls on stock markets that have dented consumer confidence.
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