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Sales on track to fall 19% in May, trade group predicts

Sales on track to fall 19% in May, trade group predicts

China’s new-vehicle market is shrinking for the second straight month, albeit at a slower pace than in April, behind strict government measures to curb coronavirus outbreaks, the China Automobile Dealers Association said Tuesday. 

Retail sales of new sedans, crossovers, SUVs, multi-purpose vehicles and minibuses across the country are expected to drop 19 percent year on year to some 1.32 million in May, according to CADA’s forecast.

About 80 percent of light-vehicle manufacturers surveyed in China expect to see double-digit declines in retail sales this month, the trade group said.

In April, retail sales of new light vehicles industrywide plunged 36 percent to 1.4 million due to transport restrictions and sweeping lockdowns in Shanghai and Changchun, two of China’s main auto production centers. 

In the first four months, industry sales dropped 12 percent to below 6 million, according to CADA’s tally.

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