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China’s car sales drop for sixth straight month with November’s 18 per cent decline a further sign of slowing economy

  • Annual figures for 2018 look set to show a first decline in at least two decades
  • BMW AG and Daimler AG have already warned about lower profits, while Jaguar Land Rover have been forced to temporarily close a factory

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US President Donald Trump claimed China had agreed to “reduce and remove” tariffs on American-made vehicles in a Tweet, although the mainland did not confirm the statement and his advisers were left scrambling for an explanation. Photo: AFP

Car sales in China plunged for a sixth consecutive month, intensifying pressure on global carmakers that have staked their future growth on the world’s largest car market.

Retail sales of saloons, multipurpose vehicles and sport utility vehicles dropped 18 per cent to 2.05 million units in November, the China Passenger Car Association said on Monday.

The size of the fall means the market is all but certain to have its first annual decline in at least two decades.

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With the trade war with the US showing no signs of abating, and slumping stocks weighing on consumers’ purchasing power, the market that global carmakers have relied on for growth since the 1990s now risks an extended decline.

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Demand is also sputtering in Europe and North America, leaving brands few places to go for growth.

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