Ford’s recent sharp decline to sales in China echoes that of other OEMs who say the market is experiencing difficulties as consumer confidence is dented by a number of factors, including a slowing economy and heightened trade tensions between the US and China which have raised tariffs on imports of goods – including cars – from the US.
Ford China sales totaled 52,434 vehicles in November, a 55% decline year over year. Jaguar Land Rover sales in China were 50.7% lower than a year ago in November as market conditions ‘remain difficult with continuing consumer uncertainty following tariff changes and trade concerns’. Jaguar Land Rover said it continues to work closely with retailers in China to respond to the present market conditions.
Volkswagen said the effects of the trade dispute with the USA ‘continue to be severe’. The entire economy, VW said, and therefore also the automobile market are faced by strong reluctance to purchase on the part of customers.
The latest data suggests that the Chinese car market is heading for an annual decline in 2018 for the first time since 1990.
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 China Association of Auto Manufacturers (CAAM).
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.
See also: China vehicle sales fall 14% in November