AutoBeta(AutoBeta.net)07/28 Report--

As China's car sales remain in the doldrums, the China Association of Automobile Manufacturers recently lowered its sales forecast for 2019 at the beginning of the year. It is expected to sell about 26.68 million vehicles in 2019, down 5% from the previous forecast of 28 million.

The decline from flat to 5 per cent is based on a large decline in overall sales in the first half of the year. From January to June this year, China's automobile production and sales completed 12.132 million and 12.323 million respectively, down 13.7% and 12.4% respectively compared with the same period last year.

Among them, the production and sales of passenger cars from January to June completed 9.978 million and 10.127 million respectively, with production and sales down 15.8% and 14% respectively compared with the same period last year. Although the decline in sales narrowed in June, the downward trend is obvious. Sales have fallen for 12 consecutive months, and car consumption and purchasing power are still low.

In addition, due to the unprecedented price reduction during the five-country-six switching period in June, consumers concentrated on picking up cars, resulting in a significant increase in terminal sales in June, but in fact, the wholesale number of manufacturers still declined. In other words, unprecedented price cuts led to the "prosperity" of the car market in June, which was the result of blood and tears from auto manufacturers and dealers, and caused a lot of losses.

As a result, even though sales grew in June compared with the same period a year earlier, Autobots failed to cheer up. There was a lot of pressure to clear inventory in the first half of the year, and market uncertainty in the second half added to their worries. According to industry analysis, Guowu has overdrawn a large number of customers in July, which will be very bleak.

For July, the forecast is not optimistic. July is the off-season for annual sales. Due to the hot weather and manufacturers' high-temperature holidays and other factors, the car purchase environment is in the doldrums, so July is the trough of the market over the years. Coupled with the consumption overdraft effect of the amazing promotion efforts in the second quarter on car buyers in the second half of the year, car purchases may hit bottom again in July.

From the 12.4% decline rate in the first half of the year to the 5% drop expected for the whole year, the China Automobile Association believes that there is still room for increment in China's auto market in the second half of the year. Do the mainframe factories and dealers recognize this confidence? The price-for-volume Chinese car market has found a way out. Manufacturers and dealers will tighten concessions in the second half of the year, and what will happen to consumers' wait-and-see attitude? How is the performance of July to be expected? Netizens said: July must be very interesting.

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