New car sales in China grew just 3 percent last month, their smallest gain in over two years, as government incentives aimed at selling more cars ended.
In addition, economists say that a week-long government holiday also slowed new car sales.
Overall, 967,200 new cars were sold in China in February, a 2.6 percent increase over the prior year in the rapidly-expanding market that has become the world’s largest.
Despite the relatively weak overall market performance, General Motors set a sales record, remaining China’s largest carmaker. Its 6 percent sales increase helped deliver 184,498 new cars, outpacing the market as a whole, although January sales were up 22 percent over the prior year. Chinese automaker BYD, meanwhile, saw sales drop 22 percent to 26,561 cars.
The government ended a sales tax break on small cars earlier this year and it also began phasing out subsidies aimed at increasing car sales in more rural areas.
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Interesting that GM is still doing well despite the slowdown. 📈
Why did BYD sales drop so much? Any deeper reasons?
Can someone explain why incentives ended? Seems counterproductive.
Great analysis, thanks for sharing!
Is it just me, or do car sales always seem to slow down after holidays? 😂