Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

China auto sales drop for 17th straight month in November

Published 12/10/2019, 03:00 AM
Updated 12/10/2019, 03:00 AM
© Reuters.  China auto sales drop for 17th straight month in November

© Reuters. China auto sales drop for 17th straight month in November

By Yilei Sun and Brenda Goh

BEIJING/SHANGHAI (Reuters) - Auto sales in China fell for a 17th consecutive month in November, with the number of new energy vehicles (NEVs) sold contracting for a fifth month in a row, data from its biggest auto industry association showed on Tuesday.

Total auto sales in the world's biggest auto market fell 3.6% from the same month a year earlier, the China Association of Automobile Manufacturers (CAAM) said.

That follows a drop of 4% in October and 5.2% in September. Car sales in the country contracted last year for the first time since the 1990s against a backdrop of slowing economic growth and a crippling Sino-U.S. trade war.

"The China 5-6 emission standard change is the biggest reason for this year’s sales plunge," said Chen Shihua, deputy secretary general at CAAM, referring to how local governments had accelerated changes to emission standards this year.

He added that overall car production levels were now returning to normal and carmakers had boosted their product line-ups in the past few months.

In November, sales of NEVs fell 43.7%, CAAM said, following a 45.6% drop in October. NEV sales had jumped almost 62% last year even as the broader auto market contracted.

NEVs include plug-in hybrids, battery-only electric vehicles and those powered by hydrogen fuel cells.

China has been a keen supporter of NEVs and has implemented sales quota requirements for automakers. But it cut subsidies this year and plans to phase them out after 2020 amid criticism that some firms have become overly reliant on the funds, making NEVs costlier and dampening demand.

"Next year there will be different NEV manufacturing quotas for carmakers. I think next year will also be an adjustment period and sales of new energy vehicle will be better than this year," said Xu Haidong, assistant secretary general at CAAM.

The prolonged car sales crisis has made global car makers from Ford (N:F) to PSA [PEUPFI.UL] cut China production plans.

Geely (HK:0175), China's best known car maker globally, said sales rose 1% year-on-year in November while China's biggest carmaker SAIC Motor (SS:600104) saw a 9.6% drop due to poor performance from joint ventures with General Motors (N:GM).

NEV sales at both BYD (SZ:002594) and BAIC's electric vehicle unit BluePark <600733.SS>, in which Daimler (DE:DAIGn) has a stake, fell around 63% last month from a year ago.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.