It will probably take two years for new-vehicle sales in China to resume growth with the economy still facing downward pressures, a top official with China’s auto industry regulator predicts.
Based on talks the ministry had recently with some major companies in the industry, “our assessment is that the market still needs a critical period this year and next year to bottom out,” Miao Wei, Minister of Industry and Information Technology, said at a press conference Monday in Beijing.
China’s new car and light-truck sales and output in 2020 will hover around the level of 25 million last year, ending up with “either zero growth or slightly negative growth”, he predicted.
China’s new-vehicle deliveries contracted for the second straight year in 2019, slipping 8.2 percent to below 25.8 million, as the economy posted the lowest annual growth -- 6.1 percent -- in 29 years.
New-vehicle output across the country also dropped 7.5 percent to roughly 25.7 million in 2019, according to the China Association of Automobile Manufacturers.