Surging popularity of Nissan, Honda fails to halt 7.5 per cent slump in China’s car sales in 2019 as slowing economy deters buyers
- Things are looking rosier for the year ahead as more motorists hit the roads and buy their first vehicle, according to the China Passenger Car Association, which forecasts a 1 per cent rise in sales
- Last year’s drop came despite a big surge in sales of Japanese cars, prized by Chinese motorists for their perceived superior design and efficiency
China’s once-buoyant car market posted declining sales for a second consecutive year, falling well short of analysts’ expectations as an economic slowdown deterred consumers from splashing out on big-ticket items.
Sales of passenger cars, which include sedans, sport utility vehicles, minivans and multi-purpose vehicles, slumped to 21.04 million units in 2019, down 7.5 per cent from the previous year, according to figures from the China Passenger Car Association. Market watchers had forecast sales would stay flat last year.
The slump came despite a large increase in sales of Japanese cars, seen by many Chinese drivers as superior to their domestic rivals.
It followed a 5.8 per cent fall in 2018, which was the first time since 1992 that the world’s biggest car market had contracted.
Things are looking rosier for the year ahead as more motorists hit the roads and purchase their first vehicle, according to the China Passenger Car Association.
“For 2020, the market is expected to get off to a slow start as the downward momentum continues,” said Cui Dongshu, the organisation’s secretary general. “But sales will shoot up from the middle of 2020 amid the release of pent-up demand. After all, the number of licensed drivers is increasing and new drivers will eventually buy cars.”