May 11, 2017
China's auto sales shrank in April as demand wilts in world's biggest car market
HONG KONG — China's auto sales shrank in April as demand for most types of vehicles wilted, an industry group said Thursday.
The China Association of Automobile Manufacturers said sales of passenger cars fell 3.7 percent last month over the same period a year ago to 1.7 million.
That's down from 1.7 percent sales growth in March.
Total vehicle sales, including buses and trucks, fell 2.2 percent from a year earlier to 2.1 million.
"Car production and sales fell significantly last month," the association said in a statement. "Automotive market demand was weak."
Auto demand in China has been cooling since Beijing raised a sales tax at the start of the year, putting off drivers from buying cars and leading analysts to forecast the market will grow by single digits this year.
Some 24.4 million vehicles were sold in China last year, more than any other country, making it the most important market for global automakers. However, this year's slowing growth does not bode well for the industry.
The association said the sport utility vehicle segment was the only one that grew, with sales rising 11.1 percent over a year ago to 684,400.
SUVs have been a big profit center for automakers operating in China, helping to offset falling demand for sedans, which fell 7.7 percent last month, and minivans, which shrank 20 percent.