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China's car sales totaled 28.0806 million in 2018, ranking first in the world for 10 years in a row, but down 2.76 per cent from a year earlier. This is the first time that China's auto market has experienced negative sales growth since 1990. In 2019, the domestic car market suffered a disadvantage in the first month, with passenger car sales falling 17.7 per cent year-on-year to 2.021 million in January, according to the China Automobile Association.

Today, the China Automobile Association released domestic car sales figures. In January 2019, China's automobile production and sales completed 2.365 million and 2.367 million respectively, down 12.1% and 15.8% respectively from the same period last year. Among them, the production and sales of passenger vehicles completed 1.995 million and 2.021 million respectively, down 14. 4 per cent and 17.7 per cent respectively over the same period last year; the production and marketing of commercial vehicles completed 370000 and 346000 vehicles respectively, up 3.2 per cent from the same period last year, and sales fell 2.2 per cent from the same period last year. In January, the production and sales of new energy vehicles completed 91000 and 96000 respectively, an increase of 113% and 138% respectively over the same period last year.

China's automobile industry has entered a stage of slow growth. China's car sales in 2018 totaled 28.0806 million, down 2.76% from the same period last year. According to the China Automobile Association's forecast, car sales in 2019 were 28 million, the same as in 2018. Of these, passenger vehicle sales are expected to be 23.6 million, unchanged from 2018; commercial vehicle sales are expected to be 4.4 million, a slight increase of 1%; and new energy vehicle sales are expected to be 1.6 million, up 33.3% from a year earlier.

It is still difficult to usher in an obvious recovery in China's automobile market in 2019, and how to boost automobile consumption has become an issue of great concern both inside and outside the industry. On January 28, the National Development and Reform Commission and other 10 departments jointly issued the "implementation Plan for further optimizing supply, promoting steady growth of consumption and promoting the formation of a strong domestic Market (2019)", putting forward six major measures to promote automobile consumption. These include: (1) orderly promotion of scrapping and renewal of old cars, (2) continuous optimization of the subsidy structure for new energy vehicles, (3) promotion of the upgrading of rural vehicles, (4) steady relaxation of restrictions on pickup vehicles entering cities, (5) acceleration of prosperity of the used car market, and (6) further optimization of local government vehicle management measures.

With the downward trend of the domestic automobile market in 2018, many manufacturers and dealers have abandoned the year-end impulse strategy in an unfavorable environment, and many manufacturers have chosen to reduce wholesale volume and dealer inventory level, so as to maintain the health and stability of the channel. From the end of last year to the beginning of 2019, a number of brand manufacturers took the initiative to adjust the wholesale number and reasonably control the dealer inventory level. finally, the dealer inventory coefficient decreased in January compared with the same period last year and month-on-month. According to the results of the "Automobile Dealer inventory" survey released by the China Automobile Circulation Association in January 2019, the comprehensive inventory coefficient of automobile dealers in January was 1.40, down 12% from the same period last year and 19% from the previous month, and the inventory level was below the warning line.

The China Automobile Association stressed that after a slight decline and fierce competition in 2018, China's automobile industry is facing transformation and upgrading in 2019, and the competition will be more fierce. Obviously, the era of rapid growth of China's auto market has passed, but this year the car market is still grim, car companies will also face greater pressure.

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