Gasgoo.com (Shanghai July 20) - The downward Chinese market is still shrouded by the overall domestic economic minimal growth and the imbalance of supply and demand in the auto market and the turbulence in the share market.
After entering the third quarter, these exists hardly a single sign of recovery in the sales downturn in the market. The new car sales of China in June decreased 2.31% from a year earlier to 1.80 million. Except March, right after the Spring Festival, almost all the months in the first half of the year reported year-on-year low sales growth with 10.4% in Jan, 6.4% in Feb, 9.4% in March, 3.7% in April, 1.2% in May and negative 3.4% in June.
The minimal growth phrase in the domestic economy contributed the fundamentally to the sales downturn in the car market. Although it is expected that the domestic economy will recover in the second half of the year, its delayed influence couldn’t save the car market.
In addition, the market begins to saturate after the demand surging period, however, none of the automakers have lowered the target of production. Thus, this resulted in the imbalance between demand and supply in the car market. And the turbulent share market attracted most funds from the car market.
Last year, China added another array of cities into the list of cities with restrictions in car purchase, which stimulated the car sales. But, the lack of such stimulation in this year also contributed partly to the sales slide.
Almost half of the mainstream automakers in China failed to realize their sales target for the first half of the year. For example, Shanghai VW and Beijing Hyundai reported sales drop in the first half of the year.
