February 18, 2019 | Investopaper
China’s Association of Automobile Manufacturers has reported the fall in the sales of the car in January by 15.8 percent from last year. This has prompted the country’s capital Beijing to promote subsidies to rural sales and purchase of new energy vehicle in an attempt to boost the falling sales.
China is the world’s largest auto market and the decline of 16 percent is a very significant drop from an economic perspective. 2.37 vehicles were sold in January and this marks the decline for the consecutive seventh month for China auto market.
Due to the trade war with the US, China has reported the slow growth in the economy which has led to the contraction of the auto market in recent times. The contraction in sales during January and February is also due to the tendency to hold off on car purchasing decision during Lunar New Year Holiday.