New vehicle sales in China continued to fall sharply in November, by 13.9% to 2.55 million units from 2.7 million units a year earlier, according to data released from the Association of Auto Manufacturers (CAAM). The decline makes it more likely that the world’s biggest vehicle market could record an annual decline this year for the first time since 1990.
November was the fifth straight month of decline for the market, driven lower by a 16% drop in passenger vehicle sales to 2.2 million units, with falling stock markets and the deepening trade war with the USA continuing to undermine domestic consumer sentiment.
Go deeper with GlobalData
Sales of new energy vehicles, comprising mainly electric vehicles, rose by just 38% year-on-year to 169,000 units in November – the slowest rate of growth this year, while cumulative eleven-month sales were up by 68% at 1.03 million units.
Chinese brands reported a 23% fall in combined sales to 909,000 vehicles in November, after declining by 18% in October, with Geely outperforming with a drop of just 0.3% followed by SAIC Motor with a decline of just over 10%.
The recent sales slowdown has driven dealer inventories to new record highs, according to data from the China Automobile Dealers Association.
Overall vehicle sales were down by almost 1.7% at 25.42 million units in the first eleven months of the year and CAAM now expects full-year volumes to fall by around 3.0% from just over 28 million units last year. This would be the first full-year market decline in some 28 years, according to local market analysts.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPassenger vehicle sales were down by 2.8% at 21.5 million units in the eleven-month period.
While growth had been expected to slow this year as a result of government tightening measures, the rate of decline in the last three months will be a source of concern – especially with compulsory new-energy vehicle quotas set to be introduced at the beginning of next year. Further weakness will likely prompt the government to bring in additional market support in the way of new tax incentives.
See also: VW brand sales down 5% in November
China sales downturn hits Jaguar Land Rover
