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China's passenger car sales fall for first time in years

AFP  |  Beijing 

China's annual fell last year for the first time in more than 20 years as the trade war with the US rocked and reined in

fell to 22.4 million vehicles in 2018, down 5.8 per cent from a year earlier, data from the Passenger Car Association (CPCA) showed on Wednesday.

In December sales plummeted 19.2 percent from a year earlier, the CPCA said.

The slumping market has hit China's manufacturing sector, which contracted last month for the first time in more than two years, according to data.

Beijing's bruising trade war with comes as it grapples with a slowing domestic economy -- growth is expected to have eased to around 6.5 percent in 2018, down from 6.9 percent in 2017.

The gloomy export picture has reinforced the need for to rely on its legion of consumers to grow its economy.

But the government's campaign against debt was in full force last year, cutting into parts of the like lending which financed for some consumers.

Declining may be last year's phenomenon, said CPCA

"I hope that's the case," he said.

Officials are taking steps to reignite consumer spending.

Policies will be rolled out to push auto and home appliance consumption, an at the told agency this week.

Still some officials have indicated car sales may have little room for growth.

"The period of rapid growth in production and sales of cars is over and low growth speed could become the norm in the automotive market," Xin Guobin, vice technology said last year, according to

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 09 2019. 18:45 IST
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