Sales of new vehicles in China declined for the 13th consecutive month in July, decreasing 4.3 percent to 1.8 million as consumer demand remains weak amid a slowing economy.
The first car slump in a generation is showing no signs of easing as the Chinese economy faces a slowdown and stricter emissions rules and a U.S. trade war weigh on demand. Carmakers that relied on the world’s largest auto market for growth for decades, pouring billions of dollars into the country, are now left questioning future investment decisions.
In July, deliveries of new light vehicles dipped 3.9 percent to below 1.53 million, according to the China Association of Automobile Manufacturers.
Sales of commercial vehicles including buses and trucks dropped 6.4 percent to around 281,000.
Through July, cumulative new-vehicle sales fell 11 percent to roughly 14.1 million.
In the first seven months, new light-vehicle deliveries slumped nearly 13 percent to 11,654,000 while new commercial-vehicle sales slipped 4.4 percent to about 2,447,000.
Demand for electrified vehicles, which have remained healthy, quickly ran out steam in July after Beijing slashed subsidies.
Combined July sales of electric vehicles and plug-in hybrids dropped 4.7 percent to approximately 80,000.
The decline came after the government finished lowering subsidies for electrified vehicles on June 25, with the aim of phasing out the incentive program by the end of 2020.
The government has raised the technology threshold for EVs that qualify for subsidies and halved subsidies for plug-in hybrids.
In the first seven months, aggregate sales of EVs and plug-in hybrids in China still surged 41 percent to approach 700,000.
Bloomberg contributed to this report.