Domestic Brands Suffer as China Car Sales Sink

China’s domestic carmakers are taking the brunt of the country’s new-car sales slump, according to The Nikkei.

Overall wholesales fell 14% in November to 2.55 million units and are down 2% through the first 11 months of 2018, according to the China Assn. of Automobile Manufacturers.

Year-on-year volumes have been fading since April. Even SUV/crossover sales have cooled, plunging 18% last month. CAAM now predicts full-year sales will shrink by 3%, marking the first full-year retreat in nearly 30 years.

Factory sales of some major domestic brands have slumped even more, The Nikkei says. November wholesales by Dongfeng Motor Group’s domestic brands dropped 17%. BAIC outperformed the market but still saw sales of its domestic models sag 11% last month.

Great Wall posted a 40% drop last month for in factory sales for its new Wey luxury brand. The Nikkei says Wey dealers in Beijing are having little success in offering to pay airfare and highway tolls to lure out-of-town customers.

There are sales exceptions for domestic brands. Zhejiang Geely Holding Group’s volume is up 29% so far this year, aided by strong sales to government agencies. Demand also is thriving for makers of so-called new-energy models. BYD, the largest seller in that segment, posted 20% growth in January-November.