Chinese Auto Sales Continue Longest Slump In Decades

The Chinese automotive industry is suffering its first sustained downturn in at least two decades.  As previewed in our July update, sales in China started to turn over the summer.  After a 4.8% increase in June, sales fell by 4% in July and 3.8% in August.  In September, vehicle sales fell by 11.6%, with SUVs, the strongest performer, suffering a 10.1% drop that month.  In October, Chinese officials said lower auto sales were the "new normal."  October sales declined by 13%, and November saw the decline steepen further to 19%.  Sales of SUVs were down 16% in November compared to 2017.

The Chinese auto industry originally projected a 3% sales growth for the year, but sales to date are now down 1.7% year over year.