China’s auto market still sluggish in June

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A sales person working at Guanggu Automobile Square in Wuhan, central China’s Hubei province, complained that the customers visiting their sales outlet started to reduce from March, and sometimes not a single customer comes to their outlet now due to the rainstorms that are lashing the economically important southern provinces.

June and July are usually the low season for auto sales in China, the market performance in July may be worse. Many consumers are taking a wait-and-see attitude, as they believe the vehicle prices will go further lower in future as the market turns from hot to warm over the next few months.

Industry insiders believe that the inventory pressure of dealers will increase as the market goes downturn. In order to post a better-looking half-year sales report, some automakers may deliver more vehicles to dealers.

Rao Da, secretary general of China Passenger Car Association, believes that the market situation will be worse in the next few months, and they won’t revise the yearly negative growth forecast.