Chinese passenger automotive market demand falls

2015 marks the first time in 15 years where the domestic demand rate the Chinese passenger automotive market has fallen under the overall market rate, according to a statement made by Liu Ming, economist at the State Information Center, at Beijing Yayuncun Market’s recently held press conference.

According to statistics released by tireworld.com.cn, domestic demand in the Chinese passenger automotive growth was 5.2% over the first half of this year. There have only been three years in the past 15 years during which domestic demand dipped below the 10% mark: 2008, 2011 and 2012. This figure is reflected in monthly statistics. While the market experienced 12.5% growth in January, it suffered a decline of 2.3% in June.

Analysts point out that average growth rate for the passenger automotive market should be 1 to 1.5 times the GDP. Therefore, 7% to 10% is considered to be an appropriate target for the market. Mr. Liu attributes the market’s poor performance of late to the lackluster state of the Chinese economy as a whole. With growth rates slowing down, Mr. Liu stresses the interdependence between the market’s performance and the economy as a whole, stating “[recent economic trends] have left a profound influence on the whole of the Chinese automotive market.”

According to statistics from the China Association of Automobile Manufacturers, a total of 1.51 million passenger automobiles were sold in June, down 6.08% from the previous month and down 3.36% from the previous year.