A senior industry executive warned that Chinese sales in the car industry may lose roughly 26 million this year or about an 8% drop as market contraction persists due to slowing economic growth and stricter vehicle emission standards.
Fu Bingfeng, the executive vice-chairman of the China Association of Automobile Manufacturers (CAAM), predicted the 8% drop which is lower than the previous 5% drop forecast in July.
“For this year, we now expect to see if we can hold on to (sales of) 26 million vehicles,” Fu said.
Fu’s outlook of the auto sales drop is about the industry’s transformation towards higher production standards, lower emission cars, and new energy vehicles.
In 2018, around 28 million cars were sold in China, already a 3% drop from the previous annual sales.
But Fu remained optimistic noting that annual auto sales of China were still on track to hit 30 million by 2023 with further headroom.
“40 million units a year cannot be the rooftop of China’s car market,” Fu said.
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