AUTO sales in China fell 18.7 percent in January, more than expected and marking the industry’s 19th consecutive month of sales decline, data from the country’s biggest auto industry association showed yesterday.

The China Association of Automobile Manufacturers (CAAM) posted on its official WeChat account that new energy vehicle sales during the month fell 51.6 percent year on year, adding that declines in China’s automotive production and sales levels will be more significant in February due to the coronavirus outbreak.

The association had said Feb. 13 that it was expecting total auto sales in the world’s biggest auto market to fall 18 percent in January from the same month a year earlier.

It also predicted that auto sales in China will slide more than 10 percent in the first half of the year and around 5 percent for the whole year if the epidemic is effectively contained before April.

Auto executives say the coronavirus is taking a severe toll on the industry, sapping buyer demand and disrupting supply chains for carmakers globally.

The CAAM, whose members include hundreds of automakers, suppliers and other companies in the sector, conducted a poll among members after the outbreak and submitted findings and suggestions to government.

The association has asked the government to offer more policies to support the industry, such as changes to auto-related taxes, and moderately adjust interest rates and banks’ reserve requirement ratio.

It has also asked the government to offer more fundraising support and credit lines to companies.

Auto sales in China, where more than 25 million vehicles were sold last year, fell 8.2 percent last year, the second consecutive year of contraction.

(SD-Agencies)