Auto Market Slump

Data from the China Association of Automobile Manufactures shows that 2.38 million vehicles were sold nationwide in October 2018, a year-on-year drop of 11.7 percent, the steepest decline in monthly numbers since 2012. From January to October 2018, auto sales in China totaled 22.87 million, dropping by 0.1 percent from a year earlier. The world’s biggest auto market is likely to witness a negative growth in 2018 after riding a prosperous market for more than 10 years. The depression stems from trade conflicts between China and the US, a sluggish domestic private sector, slowing economic growth and a decelerated income growth rate of Chinese consumers. Auto industry insiders warned the market slump is expected to linger for several years until there is a reshuffle of auto makers, where only manufacturers with core technology and advanced management skills are expected to survive.