China’s car sales are slowing in step with lower economic growth, Caixin reported. Restrictions on car ownership and the end of government policy that supported the sector also contributed to flagging sales numbers this year. Inventory at 400 of Chinese car dealerships increased an average of 22.24% in the year through June, according to research by the state-associated All-China Federation of Industry & Commerce. Many dealerships in Beijing and Shanghai have closed. “Guangqi Honda Automobile … lost money on its whole range of models last year,” Chi Yifeng, the president of Beijing Beichen Yayuncun Car Trade Market, said. The marked slowdown in car purchases this year comes after government stimulus money to the industry stopped late last year. Congestion regulations that restrict car ownership in cities including Beijing and Guangzhou, which started late 2010, have compounded dealers’ difficulties.
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