The Chinese car market has been rising steadily since 1990, and in 2009 it has become the world's largest roundabout. However, things are now different now. In October, China saw a 11.7 percent drop in sales compared to the same month in 2017. In the first 10 months of 2018, the Chinese purchased 22.87 million vehicles, which is 0.1 percent less than in the same period of the previous year.
In addition, October was the fourth month in a row when car sales in China were lower than a year earlier, suggesting that the entire 2018 could end in a minus compared to 2017.
If this really happened, it would turn out that the Chinese Association of Car Manufacturers (CAAM) failed in its forecast, as it announced a 3 percent increase in sales for the year 2018.
It remains to be seen whether car manufacturers will use repair of current sales results in November and December to end in 2018 in the plus. This year's car sales in China were also adversely affected by the US-led trade war, which led to an increase in customs duties on imports of vehicles.
According to Reuters, many car dealers in the Chinese market are currently offering big discounts to attract customers, while the government is expected to cut down on small car taxes to increase their sales.
Although the total sales of cars in the first 10 months fell, electric and plug-in hybrid models increased by 75.6 percent a year, so in January-October 860,000 vehicles were sold.