China’s car sales decrease due to economic restrictions
Economic curbs caused June automobile sales in
China to decline on a monthly basis. Automobile sales were recorded as 164'852 units in June, down by 7.1% from May.
The
China Association of Automobile Manufacturers said that sales just rose by 2.2% in June from a year earlier.
China took certain measures such as credit curbs since last year to slowdown the economy. These credit curbs became effective. This year, only 5 to 10% of automobile buyers acquired automobiles via loans. Last year, this rate was 20%.
In the first half of the year, automobile sales reached 1.12 million units, up by 29% compared to the same period of last year. However, the growth rate indicated regression in June, after a 76.8% rise recorded in February and 21% gain in May.
Private
consumption, which was the key factor of growth in recent years, has been dampened as loans became difficult to get. Under these circumstances, sales may drop year-on-year in July or August.
Additionally, many car buyers are waiting for more price cuts as
China is preparing to abolish quotas on imported vehicles early next year. Therefore, the stocks of unsold cars are gradually increasing.
According to the market sources, automobile inventories amounted to 142'249 units in June. Figures for May were not disclosed yet, but stocks stood at 103'000 units at the end of April, according to the State Statistical Bureau.