Chinese Auto Sales Slowed Down in March

Growth in China’s auto sales plunged in March as demand for SUVs weakened and purchases of sedans contracted, an industry group reported Tuesday.

Sales of cars, minivans and SUVs in the biggest market by number of vehicles sold rose 1.7 percent from a year earlier, according to the China Association of Automobile Manufacturers. That was down from 6.3 percent growth in the first two months of the year.

Total vehicle sales, including trucks and buses, rose 3 percent to 2.5 million.

Auto demand was forecast to cool after Beijing raised a sales tax Jan. 1, but the March decline was unexpectedly sharp. Forecasters expect sales growth in mid-single digits this year, down from last year’s 15 percent.

A steady decline in sales growth is squeezing global brands that look to China’s crowded market to drive revenue and newer local brands that are expanding abroad.

Sales of SUVs, which are shoring up revenue for automakers as demand in other segments plunges, rose 19.6 percent from a year earlier to 832,300. Still, that was down from 21.6 percent growth in January-February.

Sales of sedans shrank 4.9 percent to 990,000 units, down from 3.8 percent growth in January-February.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza