China car market in decline for the second consecutive year

The market of new vehicles in China is falling for the second consecutive year: according to data released by the local association of car manufacturers, deliveries in 2019 fell by8,2%, touching the quota of 25.8 million units. This result is due in particular to lower demand for cars and vans: in the past 12 months, were sold 21.5 million, a decrease of 9.6% compared to the previous period. Less marked is the decline of bus and truck have been purchased 4.3 million (- 1,1%).

Worthy of note is the decrease in sales of electric vehicles, which has suffered a setback starting from the month of June, when the local government has reduced the incentives to purchase. Deliveries of vehicles electrified – not only full electric, but also hybrid and plug-in – were down 4%, settling at 1.2 million units. The decline in sales of electric vehicles – less than 1.2% with respect to the 2018 – is significantly less marked than that of the cars PHEV, whose deliveries fell 15%.

The forecasts for 2020 do not seem reassuring: the bubble seems to have burst, and the association of the car manufacturers local speaks of afurther decline in demand of 2%. After nearly thirty years of growing sales, it is reasonable to expect that in the coming years the volumes maintain a trend similar to the current one, without big peaks. The only exception seems to be that of luxury brands, which, in spite of the general contraction in sales volumes, keep beating.

Consider, for example, Mercedes: the three-pointed Star, has proved to still the luxury brand sold in the world in 2019, China has recorded a 6.2% increase in deliveries. For mercedes-benz, China is the market that is most significant, with 693.443 cars delivered in the twelve months that have just passed. BMW, for its part, in the sales forecasts to 2020 has indicated a positive trend for China.