Saturday, August 13, 2016

decline in auto sales China industry growth stalls

Industry



Are the major car manufacturers were worried stall.
Association of Automobile Manufacturers of China announced Friday that industry sales fell 2 3 to percent in June compared to last year, it is the first decline year after year monthly auto sales in more than two years in China, which is the largest car market in the world.
People walk near a Ford Taurus sedan displayed at a media event before the 16th International Exhibition of Shanghai Automotive Industry, April 18, 2015.
We have clearly reached an inflection point in sales, said James Chao, an analyst with China-based IHS Automotive What we are seeing is a huge change in the last two years.
Last year, car sales in China rose 9 9 percent to nearly 20 million vehicles Following the drop in sales in June, the association of manufacturers has reduced its sales growth estimate this year , an increase of 7 percent to an increase of 3 percent.



There are several reasons why Chinese consumers are thinking twice before buying a new car or SUV First, falling stock markets of China and consumer confidence have led to uncertainty in the economy.
On the other hand, laws in major cities that limit vehicle registrations an effort to reduce congestion mean some families choose to have only one vehicle and uncertainty over prices could push consumers to wait before buying.
Some major players in the industry, including Volkswagen, announced price cuts for certain vehicles, and when that happens among Chinese consumers expect more discount, Chao said that consumers expect that the next step in the price.
auto sales in China shows signs of stalling Friday, July 10, 2015 7 pm Feb. 21 and 32.
Volkswagen and General Motors are the two largest automakers in China While all foreign manufacturers should share profits in the country with Chinese partners manufacturers, sales there are still a large contributor to their bottom line.


GM reported 2 1 billion in equities revenues in China last year, this was an important factor in the automaker net income full year 2 8 billion it two weeks ago, GM CEO Mary Barra said that it is confident that his company can continue to expand sales even as the Chinese auto demand slows.
We still see a chance, she said, when you look at what we have with Chevrolet SUV and more to come and when you look at Cadillac, we're seeing a real boost.
Chao said GM is in better shape than other foreign car manufacturers in China, mainly because its joint venture to sell low-cost SUV and cars in western China is relatively good.
West China, hours of Shanghai and Beijing, was a bright spot for automakers because sales in this part of the country has reached a saturation point, as they have in large metropolitan areas in eastern China.
The domestic market in China has been a key to the sales figures of Ford widened in recent years, although its operations in China has also stalled with flat sales in the first half of this year.



Correction This story has been updated to reflect the right company for James Chao.







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