Published

Chinese Gov’t Warns of Car Market Slump

A high-level Chinese official says China’s new-vehicle sales this year will drop below 30 million units this year and could trail last year’s 28.9 million total, Bloomberg News reports.
#economics

Share

A high-level Chinese official says China’s new-vehicle sales this year will drop below 30 million units this year and could trail last year’s 28.9 million total, Bloomberg News reports.

The decline would be the market’s first year-on-year decline in about 20 years. With that likelihood, carmakers should avoid excessive capacity expansion, cautions Wu Wei, who heads the machinery equipment division of China’s National Development and Reform Commission. He urges manufacturers to focus on sustainable investment returns.

Wu’s comments at the China International Import Expo in Shanghai are the central government’s most direct warning to date about the market contractions, Bloomberg says.

 

Wu adds that Chinese sales of hybrids, plug-ins and all-electric vehicles will exceed 1 million units in 2018, enough to capture more than 3% of total car sales.

RELATED CONTENT

  • Mazda, CARB and PSA North America: Car Talk

    The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.

  • Tariffs on Autos: “No One Wins”

    While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.

  • On Global EV Sales, Lean and the Supply Chain & Dealing With Snow

    The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future

Gardner Business Media - Strategic Business Solutions