Declining auto sales in China has U.S. carmakers concerned, with four straight months of declines squeezing profitability in the world’s biggest car market.
According to the Chinese Association of Automobile Manufacturers, auto sales in China fell ~14% in November over the same month in 2017. Continuing a downward slide which started in July, the drop in November sales marked the steepest fall in more than six years, and it also pushed the year-to-November sales growth into negative territory for the first time since the early 1990s.
According to market analysts, a confluence of a number of factors like a slowing Chines economy, a crackdown on certain types of auto lending, change in government policy, a growing second-hand car market, and a trade war with the United States have contributed to the decline.
Despite all the gloominess, the only new positive for U.S. car markers is that not all companies have been hit equally by the Chinese downturn. Low-end vehicles got hit the most, while premium brands have continued to see growth.