China, with its massive population, is one of the countries targeted by the sale of various motor vehicle manufacturers from around the world. But unfortunately based on this estimation, the variables did not run as smoothly as reality.
In September 2019, the vehicle sales market in China experienced a drastic decline. When compared to one year before, motor vehicle sales in September fell by 6.3 percent, reported from Driven.co.nz.
The reason for the decline in sales figures is due to weak consumer demand for motor vehicles. In addition, the existence of a trade war between China and America was also blamed as one of the causes of the decline in motor vehicle sales in China.
The existence of a trade war affects tariffs (additional costs including taxes on the export and import of goods) which affect the price of motor vehicles sold there. Thus the demand for motor vehicles related to trade competition has an impact on economic development in China itself.
Based on the China Association of Automobile Manufacturers sales of sedans, SUVs and minivans in terms of the global industry fell by 1.9 million. Meanwhile, total sales including trucks and buses also fell by 2.3 million or around 5.2 percent.