Car Wholesales in China Drop 15%

Factory shipments of passenger vehicles to dealers in China shrank 15% to 1.98 million units in April, according to the China Assn. of Automobiles Manufacturers.

The slump marks the 10th consecutive month of year-on-year declining wholesales. Last week the China Passenger Car Assn. reported a 17% drop to 1.54 million retail sales in April.

The downturn in demand has continued in spite of efforts to bolster sales. Last month the central government lowered the value-added tax for carmakers to 13% from 16%, The Nikkei points out. Many companies used the tax break to lower prices 2%-3%, but the sales retreat intensified instead.