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New car sales in China fall for first time, as second-hand sector grows
2019-01-11 10:29     Source : CGTN

Sales of new passenger vehicles in China fell by 5.8 percent in 2018, the first slump since 1992 as falling demand was offset by growth in the second-hand car market, amid signs of growing maturity in China's auto sector.

Data published by the China Passenger Vehicle Association saw overall sales of new passenger cars fall to 22.35 million last year, compared to 23.72 million vehicles in 2017.

The decline comes after Beijing-based Capital University of Finance and Economics published a study saying Chinese consumer confidence in 2018 fell into pessimistic territory, compared to the previous year.

The university's consumer confidence index came in at 99.4 in the final quarter of last year, compared to 105.1 in 2017 Q4. Any score below 100 indicates pessimism among consumers.

While consumers may be holding back on spending slightly more than in previous years, there are many other factors at play in the auto sector, with second-hand vehicle sales, car-hailing apps and improved public transportation all combining to reduce demand for brand new cars.

Chinese consumers are prioritizing budget over status when it comes to purchasing vehicles, a sign of growing maturity in the market. /VCG Photo

Data for China's second-hand auto market covering the first 11 months of last year showed a sales increase of 12.84 percent, suggesting that the wider car market is maturing as consumers look for better value.

Editor: 谭晶