China: survey sees declining consumer confidence when it comes to auto purchases image

According to the latest research, Chinese consumers’ desire to acquire a new car or SUV has dropped to the lowest level since December even as discounts from global automakers flourished.

The drop in consumer willingness last month has been reported through a survey made by MNI Indicators and had to do with both auto pricing and their overall revenue. Among Chinese consumers that were on their first car purchase the confidence was even lower, with the number of those inclined to shop for one in April at the lowest level since July 2014. The new research comes to signal the woes that automakers – both global and local – are facing when trying to lift sales across the world’s largest auto market. Both automakers and dealers have been trying to spur sales by introducing more incentives, such as discounts and rebates or interest-free loans. According to the state-backed China Association of Automobile Manufacturers, overall vehicle sales in the country might rise even slower than their initial 7 percent forecast dating back to January.

The Chinese market has seen signs of early maturity for the past two years, with sales jumping 9.9 percent last year in the passenger car retail sector last year – slower than the usual double-digit growth standard seen in recent years. That has to do with the second largest economy shift away from fast increase to a more level pace designed to ensure long-term prosperity. Buyers looking to purchase new cars are also facing increased restrictions in certain cities, as the country aims to curb pollution and traffic.

Via Bloomberg