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September 02, 2019 09:01 AM

China car production down 11% in July

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    Oxford, UK — Passenger vehicle production in China was 1.5m units in July 2019. This is a 11.0% fall compared with July 2018, according to consultants LMC Automotive.

    The consultants estimate that in 2019, total passenger vehicle sales will be down by around 5%. The consultants suggest sales could fall to 23.0m units. 

    The fall in production was compounded by car makers extending the summer holiday shutdowns. This was in response to falling sales which were down by 3.9% to 1.58m units in July. 

    Chinese car insurance data shows that demand has fell by 16% year on year in July following 40% growth in June. SMMT said that it believes the Chinese market could have bottomed out. The consultants describe the state's latest attempt to stimulate automotive demand as 'tepid'. 

    The latest Guiding Opinions on Accelerating the Development of Consumer Services to Expand Commercial Consumption by the State Council aims to stimulate overall consumption. It also calls for car purchases restrictions to be removed and wants to stimulate demand for electric vehicles. 

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