China's auto sales in June fell 9.6%, marking the 12th month of decline, according to industry data

BEIJING (Reuters) – Auto sales in China fell 9.6 percent in June from June 2007, the largest automotive badociation in the country said on Wednesday, marking the country's 12th consecutive monthly decline. vehicle market.

Sales dropped to 2.06 million vehicles, said the China Association of Automobile Manufacturers (CAAM).

This follows declines of 16.4% in May and 14.6% in April, as well as the first annual contraction since the 1990s, due to slower economic growth and crippling trade war with the United States. United States.

In the first half, sales dropped 12.4% from the previous year to 12.3 million vehicles.

The slowdown in the economy and the trade war between China and the United States have been blamed on the annual slide in auto sales, but more recently, much of the blame has been attributed to the implementation of accelerated implementation of new vehicle emission rules by 15 cities and provinces. , which account for more than 60% of car sales in China.

When the provinces set up the so-called "China 6" vehicle emission standards earlier than the 2020 deadline set by the central government, this fueled uncertainty among manufacturers and confusion among consumers, according to CAAM, badysts, dealers and consumers.

However, sales of new energy vehicles continued to grow, rising 80% in June to 152,000 vehicles, bringing first-half vehicle sales to 617,000, or increase of almost 50% compared to the previous year.

VNEs include plug-in hybrid vehicles, battery-only electric vehicles, and hydrogen fuel cell vehicles. China, affected by air pollution, is a strong supporter of NEVs, forcing automakers to meet production quotas.

Last year, sales of NEVs in the country jumped nearly 62%, even as the overall market contracted.