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December Sees Steepest China Car Sales Drop in 2 Years
9 Jan
Summary
- China's car sales declined 14.5% in December.
- This marks the largest sales drop since February 2024.
- Full-year sales growth slowed to 3.9%.
In December, China's car sales experienced their most significant contraction in almost two years, plummeting by 14.5% compared to the previous year. This sharp decline, worsening from an 8.5% drop in November, underscores the intense competition faced by automakers in the world's largest automotive market as they raced to achieve their annual sales goals.
Overall, for the full year, the Chinese auto market saw a 3.9% increase in sales. While this indicates growth, it signifies a slowdown from the previous year's 5.3% expansion and represents the slowest growth rate in three years, highlighting evolving market dynamics and consumer behavior.
The data, released by the China Passenger Car Association, points to a challenging environment. The substantial drop in December suggests that aggressive sales strategies and potentially price reductions were widespread among manufacturers attempting to clear inventory and meet financial objectives before the year concluded.
