New Car Sales in China Down 4.2 Percent in October image

Sales of new passenger vehicles in China, the largest vehicle market in the world has fell 4.2 percent on year in October to 1,111,263 units, China’s Passenger Car Association reported.

Automobile sales were destined to fall in October due to the National Day holiday, CPCA General Secretary Rao Da said in an interview with China Business News newspaper.

“We believe that (November) sales will also decrease from last year’s number, and maybe even at a bigger negative growth rate,” Rao was quoted as saying.

China’s Passenger Car Association said that sales plunge was mainly driven by the tighter subsidy scheme that started in October and targets cars consuming not more than 6.3 liters of fuel per 100 kilometers, lower from the previous 6.9-liter threshold.

CAAM spokeswoman Gao Lili said the association will release its figures for October later this week.

– updating