Published on : Oct 14, 2014
The Chinese car market grew at the slowest pace in 19 months this September. A weakened economy and increasing inventories are attributed to this slump.
Passenger car sales in Chine in the last month rose 6.4% from the previous year to approximately 1.7 million cars, according to recent data that was made public by the China Association of Automobile Manu (CAAM) which is backed up by the Chinese government. Growth in total sales of cars in both passenger and commercial vehicles slowed to a rise of only 2.5% from the significant 20% growth from last year.
After the sales fall in February 2013, China witnessed the weakest sales since then in September. Analysts mentioned that the latest results were weak for what was supposed to be a traditionally strong month. Auto companies and dealers usually step up their marketing attempts in September to attract buyers before the National Day holiday that started on the first of October.
Foreign car companies have taken market share from Chinese brands to overcome the market’s slow rate of growth. CAAM stated foreign car companies have increased their share of the passenger vehicle in the Chinese market. The market was previously placed at 60% in the last year and has now reached 62.4% for this year.
Chinese citizens shared their perspective on buying a new car. Many have stated that parking and maintenance costs for new cars in cities like Shanghai becomes too costly and stressful. On the other hand, improving public transport infrastructure has enabled most of the working class people to opt for it instead of buying a new car.