The most revered auto industry association in China said on Tuesday that there was a drop of 13.9 per cent in the sale of automobiles in China for the month of November compared to the same period a year earlier. This denotes the largest drop in the sale of number of auto units since more than six years in the largest auto market of the world.
Chinese automotive sales noted the total number of units sold in November at 2.55 million, marking a drop in the number for the fifth consecutive month and has added on to the woes of the second largest economy of the world that is already slowing down in terms of growth and the escalating trade war between Chine and the United States.
The last occasion when there was a larger drop in the monthly sale of vehicles in China was back in January 2012 when auto sales were hurt because of an extended holiday due to the Lunar New Year holiday.
Analysts and industry experts believe that China is set to head for its first annual auto sales contraction which has the economy has not seen since 1990 because the drop in car sales in the month of November was preceded by drops of almost 12 per cent in each of the past two preceding months.
According to data from then China Association of Automobile Manufacturers (CAAM) shows For the first eleven months of the year, auto sales in the country totalled 25.4 million vehicles which was 1.7 per cent lower compared to the same period a year earlier.
No immediate reason for the drop in the sale for the month of November was given by the industry body but it had recently listed the slowness of the economy and the trade war with the US having have had a negative impact on auto sales in China.
On the other hand, a separate report, the Chinese economy also saw a drop in the shipments of mobile phone drop by 18.2 per cent year on year for the month of November at 35.37 million units.
In the 11 months leading up to November, the Chinese smartphone makers noted a drop of 15.6 per cent in shipments compared to the same period a year ago at 379 million units. This information was published by the China Academy of Information and Communications Technology (CAICT) which is a scientific research institute governed by the Ministry of Industry and Information Technology of China.
There was a 16.9 per cent year-on-year drop in 4G phone shipment reaching 33.58 million which accounted for 94.9 per cent of the total shipments that were made in November, said the report from the institute.
86.4 percent of the total shipments in November was accounted for by Chinese phones ay about 30.5 million units which marked a drop of 17.9 per cent year on year. The number of new models launched last month decreased 49.4 percent year on year, the report also showed.
(Adapted from Xinhaunet.com)