China’s car industry slowdown to continue into 2020 as tariff impact piles up, manufacturers lose US orders
- Mainland car sales fell for the 15th straight month in September amid the long tail fallout from the trade war with the United States
- Recovery predicted to be slow as increasing trade war tariffs push American manufacturers to cancel orders and source parts in Mexico and India
China will need to wait until at least the start of 2020 for its automotive industry to help shore up the slowing economy as the world’s largest car market enters “a period of great uncertainty”, according to analysts, after sales fell for the 15th straight month in September amid the fallout from the trade war with the United States.
But in September, sales of passenger vehicles slumped 6.6 per cent compared to a year earlier to 1.81 million units, according to data from the China Association of Automobile Manufacturers released on Monday.
“We are entering a period of great uncertainty,” said a commentary from car industry investment advisory firm ZoZo Go published on Thursday. “US-China relations are at their worst in 40 years. Consumer confidence is weak. [There] is a hazy feeling of not knowing what’s next.”
We are entering a period of great uncertainty. US-China relations are at their worst in 40 years. Consumer confidence is weak. [There] is a hazy feeling of not knowing what’s next