China Car Sales Slows Down to 3.7 percent

China’s auto sales growth tumbled to 3.7 percent in August, further deepening an economic slowdown, data showed Monday.

Customers bought 1.23 million cars, according to a government-authorized industry group, the China Association of Auto Manufacturers. The lower growth extended a steady decline from July’s 11 percent rate and June’s 15.8 percent.

The slowdown is a blow to a global auto industry that is looking to China, the biggest market by number of vehicles sold, to drive sales growth amid weak demand in U.S. and European markets.

General Motors Co., Ford Motor Co. and other global brands say their sales are growing faster than the overall market. That is squeezing smaller Chinese brands.

Growth in total vehicle sales also slowed in August, CAAM said. Sales rose 7.8 percent to 1.5 million units, down from July’s 8 percent.

Sales were unexpectedly strong and might have received a temporary boost from sale prices, said Zhang Xin, an industry analyst at Guotai Jun’an Securities in Beijing.

“I think the main reason is ‘On Sale,’ especially led by the famous and luxury brands,” Zhang said.

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