AUTO sales in China fell 16.4 percent in May from the same month a year earlier, the country’s biggest auto industry association said yesterday, the 11th consecutive month of decline in the world’s largest vehicle market. Sales fell to 1.91 million vehicles last month, said the China Association of Automobile Manufacturers (CAAM). That followed declines of 14.6 percent in April and 5.2 percent in March, as well as the first annual contraction last year since the 1990s against a backdrop of slowing economic growth and a trade dispute with the United States. Sales also suffered from provinces implementing “China VI” vehicle emission standards earlier than the Central Government’s 2020 deadline, stoking uncertainty among manufacturers, according to the CAAM, analysts, dealers and consumers. In the new energy vehicle (NEV) segment, sales continued to rise in May, by 1.8 percent to 104,000 vehicles, the CAAM said. Last year, though the broader market shrank, NEV sales jumped almost 62 percent. NEVs include petrol-electric hybrid vehicles, plug-in hybrids, battery-only electric vehicles and hydrogen fuel cell vehicles. China has been a keen supporter of NEVs, requiring automakers to meet sales quotas. Earlier this month, the government announced measures to revive slumping car sales, including stopping local authorities from imposing new restrictions on car purchases and eliminating restrictions that applied to NEVs. Contrary to market expectations, the measures did not include the relaxation of controls over the issuance of new licenses for petrol-powered cars in major cities. In May, most automakers reported a decline in China sales, except Japan’s Toyota Motor Corp. and Honda Motor Co., which logged double-digit growth.(SD-Agencies) |