AutoBeta(AutoBeta.net)10/21 Report--

China's car sales remain in the doldrums, and the overall downward trend has not fundamentally changed. Car sales fell by double digits in the first half of 2019 and narrowed in the second half of the year as they entered a downward channel in the second half of last year and fell from a year-on-year base.

On October 16th CCTV Finance released a set of data to further reflect the current situation of insufficient kinetic energy in automobile consumption. In September this year, China's car sales narrowed year-on-year, with production and sales volume of 2.209 million and 2.271 million respectively, down 6.2% and 5.2% respectively compared with the same period last year. From January to September, automobile production and sales completed 18.149 million and 18.371 million vehicles, respectively, and production and sales volume decreased by 11.4% and 10.3% respectively over the same period last year. At the same time, China's automobile production and sales have also declined for 14 consecutive months compared with the same period last year. Not only that, the "fast-growing" new energy vehicle industry has also entered a cold winter, with sales falling for three consecutive months. In September, sales of new energy vehicles were only 80,000, down as much as 34.2% from the same period last year.

According to the analysis of some experts, at present, China's macro-economic growth is slowing down, and without strong policy subsidy support and stimulus policies that stimulate the market, automobile production and sales are optimistically estimated to decline by at least 5% for the whole year.

However, the China Automobile Association believes that we should not talk down China's auto industry, China's car demand is very strong, the potential is very great.

Chen Shihua, assistant secretary general of the China Association of Automobile Manufacturers, said at the State Affairs Forum that China now has about 250 million cars per 1,000 people, which is at a relatively low level. China has a population of 1.4 billion, and the demand for cars is very strong. The potential is very great. Chen Shihua pointed out that China's auto industry should not be belittled.

Chen Shihua believes that before 2010, China's automobile industry was a stage of rapid growth, with a growth rate of 24% in the first decade. With the total growth of China's automobile industry from 2010 to 2018, the overall growth rate also declined. however, according to the development experience of the automobile industry in developed countries, China is still in the early stage of popularization and has great potential.

Chen Shihua further pointed out that China's automobile industry is now in a critical period of transformation and upgrading, before the rapid development, the development situation is relatively extensive, and China's automobile industry will enter a high-quality development stage in the future. How to adapt to this situation, or how the government to formulate policies to ensure the development of China's automobile industry, this is a very key issue in the future. Including the focus on the development of new energy vehicles, there are no subsidies for new energy vehicles, how to develop new energy vehicles in China, how to recognize the quality of new energy vehicles, and so on.

In addition, the National Bureau of Statistics also has related remarks, saying that China's automobile consumption still has room for growth and potential.

The Information Office of the State Council held a press conference on October 18. Mao Shengyong, director of the National Economic Comprehensive Statistics Department of the National Bureau of Statistics and spokesman, said in response to a question about the prospect of China's automobile market that automobile production and sales have declined. This situation has also occurred in other countries in the world. At present, in terms of car ownership, China still has room for growth and potential. Overall consumption will still maintain a relatively good growth trend.

In view of the current situation of the automobile industry environment, people in the industry also have different views.

Some people in the industry said, "the key is that it is becoming more and more difficult for ordinary people to earn money. The high cost of living has led to conservative consumer confidence. The sharp decline in the global economy has directly affected the market consumer demand." This is not a bad word, it is a real market economy phenomenon, and it is certainly not a bad word to describe a normal social phenomenon. "

Cui Dongshu, secretary-general of the Federation, said in a post earlier that "consumption in the car market is extremely poor, and the deceleration of consumption in China is caused by housing prices, superimposed by other factors." However, the erosion effect of real estate on social wealth is very serious. The high growth of debt in recent years has a great impact on the purchasing power of residents, especially on the car market. " Cui Dongshu also believes that real estate continued to rise in 2019, the car market is in a serious downturn, and the policy to stimulate automobile consumption should be further implemented this year. The current deficiency in consumption is automobile consumption, which is a huge opportunity. Only by restraining houses and promoting cars can we achieve sound and sustainable economic development.

It is an indisputable fact that consumers' purchasing power of cars is declining. Perhaps real consumers know best whether the market is saturated and why car sales continue to decline.

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