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Agency cuts car output forecast for China three times this year

Source: 21st Century Business Herald | Date: Nov. 5

  • Since the beginning of the year, China's car production and sales have maintained a downward trend. In the first three quarters of the year, a total of 17.092 million cars were produced in China, down 0.8% year-on-year, while 17.057 million units were sold, representing a year-on-year decrease of 0.3%, figures from the China Association of Automobile Manufacturers indicate.

  • A consulting firm blames the weak performance on a slowing economy, car-purchase restrictions imposed in first-tier cities, and the emerging ride sharing model. Research agencies have cut car production forecast three times. China stands a slim chance of producing over 24 million cars this year, with its production and sales growth expected to stand at 5% over the next decade.

  • Amid an industry-wide slowdown, the "One Belt, One Road" initiative is expected to create new opportunities for local automakers. Experts have forecast that the policy will help local carmakers boost their exports. Over the next three years, car sales in the regions involved in the initiative may reach 15-18 million units.