October Car Sales in China Fell 13%

Retail sales of new passenger vehicles in China dropped 13% to 1.98 million units in October, marking the fifth consecutive month of year-on-year shrinkage, according to the China Passenger Car Assn.

Deliveries through the first 10 months of 2018 declined 3% to 18.4 million units. The government predicts the full-year total will be about the same as last year, when sales rose 3% to 28.9 million vehicles.

Economic planners reportedly are considering a scheme to half the country’s tax on new vehicles to 5%. The government has deployed the same maneuver twice before, applying it to models powered by engines that displace no more than 1.6 liters.

In 2009, the move triggered a 17% jump in annual sales. When the plan was revived in 2015, demand rose 11% in the first month.