China’s auto sales rose for the first time in a year, but\nthe world’s largest market remains stuck in a deep recession showing little\nsign of ending anytime soon, as the country’s massive economy is slowing down.<\/p>\n\n\n\n
Geely, one of China’s largest automakers, released late\nMonday a report showing net profit fell 40 percent in the first half of the\nyear. In June alone, sales of the company’s cars fell 29%. The company said the\nreason for the decline was mostly lower sales in China than expected. Geely\nsales fell 33% in their home market.<\/p>\n\n\n\n
Global brands also suffer. Ford said last week it sold\nnearly 22 percent less cars in China in the second quarter compared to the same\nperiod last year. General Motors also reported a 12% decline in car sales in\nChina during the same quarter.<\/p>\n\n\n\n
Many major Chinese automakers have seen severe declines.\nHaima Automobile recorded a 70% drop in sales for the first five months.\nChongqing Changan Automobile, the Chinese partner of Ford, recorded a 33% drop\nin the same period.<\/p>\n\n\n\n
Suppliers also feel the effects of the Chinese market’s\nrecession. BASF (BASFY), the German based chemical company, lowered its profit\nforecast for this year on Monday, blaming weak vehicle sales and trade tension\nbetween the United States and China. ” Globally, [auto] production\ndeclined by around 6% in the first half of 2019. In China, the world’s largest\nautomotive market, the decrease was more than twice as high, at around\n13%,”.<\/p>\n\n\n\n
China’s auto market shrank for the first time in more than\ntwo decades in 2018, worsening the slowdown this year caused by weak economic\ngrowth, the trade war with the United States and tough new emission standards\nthat were adopted on the 1st<\/sup> of July. The reluctance of consumers to\nmake large purchases in an uncertain environment has also become part of the\nproblem.<\/p>\n\n\n\n On July 1, China set a deadline for provinces and highly\npolluted region to implement new emissions standards. So far, at least 18\nprovinces and cities have conformed, including Beijing and Shanghai.<\/p>\n\n\n\n After falling for 11 months and by 13% for the first five\nmonths of 2019 – car sales rose in June. The first- cumulative figures for the\nfirst 6 months of the year are due for release on Wednesday. However, the\nincrease in June sales is largely due to a large discount to liquidate\ninventories of cars with old emission standards.<\/p>\n\n\n\n Finally, analysts expect car sales in China to fall 5% this\nyear, worse than last year’s 3% drop. Geely, the biggest shareholder of\nGermany’s Daimler (DDAIF), fell 3.8% on Tuesday to $11.70, its lowest level in\nsix months. Analysts cut Geely\u2019s target price by 38% to just $5.<\/p>\n","protected":false},"excerpt":{"rendered":" China’s auto sales rose for the first time in a year, but the world’s largest market remains stuck in a deep recession showing little sign of ending anytime soon, as the country’s massive economy is […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[63],"tags":[116,74,66,79,36,34,114,48,24,131,10,58,57,70,47,86,119,23,109,39,115],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1278"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1278"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1278\/revisions"}],"predecessor-version":[{"id":1280,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1278\/revisions\/1280"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1279"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}