As China’s auto market continues to stagger through the year, experts said the dips and fluctuations in production and sales are to be expected and predict a rebound in growth, the Economic Daily reported.
Based on the report, many signs point to a slowing automobile sector in China. For instance, automobile production and sales significantly reduced in October. Some in the industry have estimated China’s sales volume ceiling at 30 million units.
Statistics from the China Association of Automobile Manufactures show that in October automobile production and sales were 2.33 million and 2.38 million respectively, a year-on-year decrease of 10.05 percent and 11.7 percent.
Negative growth is basically unavoidable, said Chen Shihua, an assistant secretary-general of the China Association of Automobile Manufactured, adding that sales figures for the remaining two months of 2018 are unlikely to exceed those of last year.
Zhou Yi, an assistant research fellow at the Research Department of Industrial Economy at the Development Research Center of the State Council, said that auto sales currently account for nearly 10 percent of overall consumption, and poor auto sales will drag down total consumption rates.
These automobile production and sales are attributed to slowing economic growth and uncertainties in the economy, which to some degree reduce consumption, Zhou said.
Although analysts agreed that the auto industry would reach its "ceiling", they did not believe the ceiling would come soon or at 30 million. Considering growth in urbanization and potential for car ownership in China, the automotive industry is still a sunrise industry, Zhou said. Cui Dongshu, secretary-general of China Passenger Car Association, thought it would take at least 20 years for China's auto industry to reach its ceiling in terms of production and sales as auto ownership remained low.
Old Version
