China’s Retail Car Sales Drop 10%

Retail sales of passenger vehicles in China fell 10% year-on-year to 2.12 million units in January, according to the China Passenger Car Assn.

The slump was China’s first in 11 months. It follows above-average buying in December, when consumers scrambled to buy cars before a government tax incentive was reduced. January also contained five fewer selling days because of the timing of the Lunar New Year holiday.

CPCA says demand for SUV/crossovers climbed 7%. But sales of conventional sedans plunged 18%. Deliveries of light commercial vehicles fell 28%.

The China Assn. of Automobile Manufacturers is expected to report January vehicle wholesales on Monday.