The Chinese auto industry, the world’s largest market, has shown its first signs of weakness, with sales in October further slowing down to a 2.8% positive result.
The country’s auto business showed a decisively sluggish pace last month, with only the US and European automakers managing good increases at the expense of their Japanese competitors. China’s own slowing economy has impacted the solid growth of the car market, while the government officials have called for refrained expenses and regulators are increasing their scrutiny over (mostly foreign) companies operating in the auto industry.
Dong Yang, the chief of China’s auto industry association is now forecasting that 2014 vehicle deliveries might rise just 7% overall, half of the 13.9% increase recorded during 2013.The China Association of Automobile Manufacturers announced that in October around 1.99 million new vehicles were delivered. So far, after the first ten months of the year have passed, China’s auto sales only grew by 6.6% year-over-year. General Motors, Volkswagen and Ford managed to expand beyond the industry growth accounted so far this year – while both Honda and Nissan recently had to lower their full-year growth targets after seeing deliveries plunge for the past four months. The Japanese automakers are once more in part hit by rising tensions between the Tokyo and Beijing governments.