Many market observers have noted that China still have a massive car market. For many years, China's auto industry sales have consistently grown every year. However, new data revealed that China's car sales have slumped recently. Despite this, reports have noted that electric car sales and online marketplaces in the country continue to thrive.
Based on recent reports, new cars sales in China have dropped to 23.7 million in 2018. This represents a 4.1 percent drop on a year-over-year basis. The report was published by the country's Association of Automobile Manufacturers. This is the first annual decline in China's car market since 1990.
According to a number of market analysts, there were a few factors that have resulted in this dip. One of the biggest factors noted by analysts is China's trade war with the United States. Massive tariffs levied on car imports have a significant dent on car sales. The trade war has also prompted electric car manufacturer Tesla to drop the price of its Model 3 cars in China. Also because of the trade war, Jaguar Land Rover temporarily closed its factory in China due to dwindling sales
While the overall car sales in China have stumped, electric and hybrid car sales continue to post positive numbers. This particular segment of the car industry has posted a growth of 61.7 percent. This represents a total sales of 1.26 million new units.
Many market analysts have noted that this is an expected output since China have adopted strict regulations with regards to pollution and alternative energy. China has set a new benchmark in order to cut down its carbon footprints. China is planning to achieve this by giving out huge subsidies to both manufacturers and consumers.
While electric car sales continue to rise, some analysts have noted that there are still some factors that hinder the explosion of the electric car revolution in China. Chief among these hurdles is the lack of charging stations in the country. There are also rumors claiming that the country might start to cut back on its subsidies in order to prevent overcapacity in the future.
The report published by China's Automobile Dealers Association has also revealed some interesting facts. As the Chinese economy starts to feel some pressure, secondhand car sales in the country posted a 13 percent growth in 2018. This represents a total sales output of 12.6 million in just the first 11 months of the previous year.
