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In this Oct. 31, 2018, photo, a staff members walked past a semi truck loaded into a parking lot for a local automaker in Qingdao in eastern China's Shandong province. China's auto sales for a fourth month in October, tumbling 13 percent from a year earlier and adding to an unexpectedly painful downturn for global automakers in their biggest market. (Chinatopix via AP) The Associated Press
By JOE McDONALD, AP Business Writer
BEIJING (AP) – China's auto sales are slipping into the global industry's biggest market deepened.
Purchases of SUVs, sedans and minivans contracted 13 percent from a year earlier to just over 2 million units, the China Association of Auto Manufacturers reported Friday.
Auto demand had been predicted to weaken after the financial crisis. But the slump is likely to be expected.
The downturn comes at an awkward time for global and Chinese automakers that are spending heavily to meet government targets to develop and sell electric models.
It adds to the challenges for communist leaders as they try to shore up economic growth and fight with President Donald Trump over Beijing's campaign for state-of-the-art creation of global champions in robotics and other technology industries.
Sales for the 10 months through October fell 1 percent from a year earlier to 19.3 million vehicles. It was well forecast for growth in mid-single digits after last year's 1.4 percent expansion.
The slowdown is a "normal correction" following Zhang Xin, an independent industry analyst.
"The bad overall environment has been played by the biggest role," said Zhang.
If economic conditions sour, "he said.
China is a top market for General Motors Co., Volkswagen AG and other industry majors that look to expand prosperous Chinese customers to drive revenue growth. They are spending billions of dollars to develop models to appeal to local tastes.
They rival the world of electric rivals BYD Auto, Geely Auto and Great Wall Motor SUV maker.
Total vehicle sales, including trucks and buses, shrank 11.7 percent in October to 2.4 million. For the year to date, they were off 0.1 percent at 22.9 million.
October's decline was worse than September's 12 percent contraction.
VW, which lives with GM for the status of China's most popular brand, said sales declined 9.8 percent to 274,000. Sales for the first 10 months of the year were up to 0.4 percent at 2.5 million.
Nissan Motor Co. said October sales shrank 5.5 percent to 142,078 vehicles.
CAAM Gave No Details of October SUVs, the industry's profit engine, said year-to-date sales growth slowed to 1.6 percent from September's 3.9 percent.
Sales of gasoline-electric hybrid and pure-electric vehicles rose 51 percent to 138,000. For the first 10 months of the year, rose 75.6 percent to 860,000.
Automakers are rolling out dozens of electrics but depend on gasoline-powered models for their profits.
Chinese domestic brands that had been expanding their market share with lower-cost SUVs and sedans.
Sales contracted 18 percent from a year earlier to 852,000 vehicles. Sales of Chinese-brand SUVs sank 21.8 percent to 498,000.
Year-to-date sales were 3.6 percent at just under 8.1 million. Their total market share is 2.5 percentage points to 41.6 percent.
Associated Press researcher Yu Bing contributed to this report.
China Association of Auto Manufacturers: www.caam.org.cn
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