China’s historic car market decline continues as US trade war and emissions clampdown hit sales

Sales of sedans, sport utility vehicles, minivans and multipurpose vehicles in July fell 3.9 per cent from a year earlier to 1.53 million units

US-China trade war, tighter regulations and a slowing Chinese economy combine to hit sales in the world’s largest car market

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China's sales of sedans, sport utility vehicles, minivans and multipurpose vehicles in July fell 3.9 per cent from a year earlier to 1.53 million units. Photo: AP

Published: 3:52pm, 12 Aug 2019Updated: 4:37pm, 12 Aug 2019

China’s car deliveries continued to shrink in July, extending the market’s historic decline, according to data released on Monday.

Sales of sedans, sport utility vehicles, minivans and multipurpose vehicles in July fell 3.9 per cent from a year earlier to 1.53 million units, the China Association of Automobile Manufacturers (CAAM) said, indicating the 13th consecutive monthly decline.

The first car slump in a generation is showing no signs of easing as the Chinese economy faces a slowdown and stricter emissions rules and the trade war weigh on demand.

Carmakers that relied on the world’s largest vehicle market for growth for decades, pouring billions of dollars into the country, are now left questioning future investment decisions.

US President Donald Trump said this month that the United States will impose an additional 10 per cent tariff on another US$300 billion worth of Chinese exports starting in September, after the two sides ended their first face-to-face talks in three months without progress.