China’s Declining Auto Sales Might Be Dimming A Change In Shoppers’ Tastes – Market News Wire 24
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China’s Declining Auto Sales Might Be Dimming A Change In Shoppers’ Tastes

Recently, China’s auto industry has struck a soft patch, but there might be an intense spot to it. The sales of auto have decreased in China for straight 9 Months, including a 5.2% drop down in March. The electric-powered cars were on display from foreign auto giants and start-ups alike at Shanghai Auto Show. For few in the industry, they state it would be the smartphone-like crossing point of the new vehicles that would truly attract consumers. Those buyers are ever more using internet-linked services like daily food delivery, especially in China. The so-called novel energy vehicles are flourishing, with sales climbing 62% in the last year. And not just due to the way they are powered.

Fu Qiang—President and Co-Founder of Aiways (electric vehicle start-up)—said, “The key point is smart and not new energy.” Fu is a CEO and former president of Volvo Cars China. The 9-Month decline in automobile sales in the largest vehicle market globally has many worried regarding a significant drop down in the Chinese financial system and the wallets of a populace of over 1 Billion. In the last year, insecurity about the fight from the U.S.-China trade spat and Beijing’s attempts to lower reliance on debt for development put a chill on investment, particularly on big-ticket items like cars. Alan Kang—Senior Market Analyst at LMC Automotive—said that most of the dropdown in auto sales in the past 2 Years was the outcome of a tough comparison with rapid development in 2016.

On a similar note, recently, President Trump’s trade war forced Volvo Cars to move in South Carolina. Reportedly, Volvo is a Chinese-owned Swedish firm manufacturing cars in the U.S. When it determined to set up a division in South Carolina to manufacture cars to ship across the globe, it was following a long tradition. But in advance the plant was unveiled in last year, Trump changed America’s approach toward trade policy.

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