China auto sales sink

[李伟王芳 + 77]

Automobile sales in China plummeted 11.6% in September to 2.39M units and drop was the largest in China since 2011 and marks the third straight month of declines amid trade issues. The three-month downturn in auto sales in China is a negative factor for global automakers as well as domestic producers due to their heavy investments in China on the expectation of a solidly growing market.

[Hajga Loma DK + 47]

4 minutes ago, 李伟王芳 said:

Automobile sales in China plummeted 11.6% in September to 2.39M units and drop was the largest in China since 2011 and marks the third straight month of declines amid trade issues. The three-month downturn in auto sales in China is a negative factor for global automakers as well as domestic producers due to their heavy investments in China on the expectation of a solidly growing market.

But what is the data for EV? Surely for Tesla to be the headline the relevant news is EV sales in China

[Ajan Bosnjacki + 27]

according to the caam.org.cn web-site, passenger September car sales 2.394m units are up 13.82% MoM,but down 11.55% YoY. 

[李伟王芳 + 77]

Just now, Ajan Bosnjacki said:

according to the caam.org.cn web-site, passenger September car sales 2.394m units are up 13.82% MoM,but down 11.55% YoY. 

Right, it is down 11.6% y/y. Nobody really uses m/m numbers due to seasonal fluctuations.

[Meanwhile + 49]

3 minutes ago, Hajga Loma DK said:

But what is the data for EV? Surely for Tesla to be the headline the relevant news is EV sales in China

The tariffs are why EV makers KNDI and NIO will do well in their own country and TSLA won't.

[Nigerian Price + 22]

1 minute ago, Meanwhile said:

The tariffs are why EV makers KNDI and NIO will do well in their own country and TSLA won't.

Ultimately we will have a trade deal with China, we ll see numbers growing again. This is an opportunity to buy GM and other while weak hands sell. 

[Cokiga Damke + 53]

10 minutes ago, 李伟王芳 said:

Automobile sales in China plummeted 11.6% in September to 2.39M units and drop was the largest in China since 2011 and marks the third straight month of declines amid trade issues. The three-month downturn in auto sales in China is a negative factor for global automakers as well as domestic producers due to their heavy investments in China on the expectation of a solidly growing market.

I understand US Auto Makers are down 20% in China. Been hurt the most.

[Sefko Trafikant + 35]

1 minute ago, Cokiga Damke said:

I understand US Auto Makers are down 20% in China. Been hurt the most.

Ford's September sales in China were down 43 percent.

[ceo_energemsier + 1,818]

Another sign that the trade tariffs are hurting the Chinese economy in more ways than 1. We have an ongoing topic about China trade tariffs on OilPrice

[Jan van Eck + 7,558]

Apparently there has been a tightening of credit in China.  Probably more of a cause for slow sales than anything else.  Credit availability has been the historical factor in US sales. 

It was the need to establish a credit facility in-house that led to the US auto builders to set up their finance arms.  You went to Ford, picked out your wheels, and Ford Credit had their applications right there for you to go fill out and sign.  Approval was instant.  Sign and drive, out the door you went with your new ride. 

Ford in particular was famous for financing "ghosts," the buyers who had nothing on a credit report because they only paid cash. You could be a complete ghost and buy a car from Ford, I know because I have done it.  GM's GMAC Credit hired staffers who actually insisted that their customers would have a "credit score";  those guys cost GM a ton of sales. What Ford understood was "brand affinity"; customers bought Ford, and then would continue to buy Ford.  The other car builder that understood this was Honda  (and that business model was followed by Toyota).  If you wanted to be a successful mass marketer, then you needed to get the customer to buy your car at an early age, precisely when they have no "credit score."  Ford understood that;  it was why they did not go under during the Big Collapse in 2008.  GM screwed it up, and their stockholders saw their share values go from $55/share to zero.