"Worst Slump In A Generation": China Auto Sales Continue Historic Collapse


“Worst Slump In A Generation”: China Auto Sales Continue Historic Collapse

Auto sales in China have fallen for the 15th month out of 16 months in September. It’s the “worst slump in a generation”, according to Bloomberg, as the key Asian market continues to be the poster child for the global automotive recession. 

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The market fell 6.6% to 1.81 million total units, according to the China Passenger Car Association. The auto industry continues to be weighed down by a slowing global economy, the trade war and stricter emissions rules. The China Association of Automobile Manufacturers is forecasting a drop in vehicle deliveries to dealers in 2019, despite China trying several types of stimulus to drum up demand.
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Both local manufacturers and global manufacturers have experienced these headwinds in China.

General Motors said late last week that third quarter deliveries in China were down 18% and local Chinese manufacturer BYD said sales were lower in September by 15%. 

Additional data from Marklines shows that names like Mitsubishi, Mazda and Nissan continued mid-single digit declines, while Toyota and Honda were able to (barely) buck the trend. 

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  • Nissan announced on October 10 that it sold 134,713 units in September in China, reflecting a 4.6% y/y decrease in sales. September sales of the 7th-generation Altima, Lannia, Tiida, Kicks and Qashqai increased. Year-to-date (YTD) sales from January to September totaled 1,090,983 units, reflecting a 0.4% y/y decrease.

  • Toyota sold 143,100 units in September, reflecting a 1.6% y/y increase. YTD sales totaled 1,181,300 units, reflecting an 8.4% y/y increase.

  • Honda announced that its September sales were 138,056 units, reflecting a y/y increase of 4.0%. Sales of the Civic and Accord exceeded 20,000 units. Sales of the Accord, Odyssey, CR-V, Inspire and Elysion, all of which are equipped with the SPORT HYBRID, a highly efficient double-motor hybrid power system, totaled 13,270 units. YTD sales totaled 1,123,570 units, reflecting a 16.4% y/y increase.

  • Mazda announced that sales in September reached 20,619 units, reflecting a 5.9% y/y decrease. YTD sales totaled 161,742 units.

Additional data on Chinese auto numbers for September will be forthcoming, and we will update this post when applicable. 

Tyler Durden

Tue, 10/15/2019 – 23:55


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