Price cuts and lending curbs dampen interest, with talk of a seasonal lull failing to sway analysts who see more declines
Growth in mainland car sales slowed to the lowest level in two years last month, as consumers waited for prices to stabilise and banks put the brakes on new car loans.
Reuters yesterday published data, attributed to the China Association of Automobile Manufacturers, showing passenger car sales dropped 7.1 per cent to 164,852 units, or just 2.2 per cent higher than in June last year.
Vehicle sales had been accelerating in recent years, with the increased availability of consumer loans and the proliferation of dealerships across the country. Car sales growth reached 76.8 per cent year on year in February.
Growth figures have since revealed a pronounced downward trend: 59.1 per cent year on year in March, 38.2 per cent in April and 18.82 per cent in May, according to the association.
Analysts say many consumers have been spooked by the aggressive price cuts of manufacturers and dealers, fearing their investment may depreciate soon after purchase.
