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Why car sales have dropped and why that might be a good thing

31 10 14

CAR sales in China dropped for the first time in almost thirty years in 2018, ending the consistent run of growth that many local and international manufacturers had come to rely on from the world’s largest car market.

The six percent drop in sales spells trouble for many manufacturers who have been banking on China to make up the shortfalls brought on by oversaturation and declining car sales elsewhere in the world.

This isn’t just a China problem, but a global trend.

Europe recorded an 8.7 percent drop in December. US automaker Ford reported an 8.8 percent drop in sales for December, with declines in passenger cars, SUVs and pickup trucks; and in the UK, new vehicle sales in 2018 fell by their biggest rate since the global financial crisis a decade ago. The Australian car market recorded its first sales decline since 2014 with a three percent drop over the prior year, ending ten continuous months of slowing sales.

SEE ALSO: Why the Chinese have stopped spending

In China, the slowdown in sales is predominantly attributed to a general economic slowdown, rising unemployment, mounting household debt and less consumer confidence. Add to this........

© Asian Correspondent