China & India Auto Sales Spiral Down




Search  

ORIGINAL POST

Posted by Ed 40 days ago

Here’s why. The strategy is a game changer with global impact.

Geely, China’s largest domestic automaker, disclosed that deliveries plunged 29% in June compared to a year ago, and that they’re down 15% in the first half. And it slashed by another 10% its already lowered forecast for deliveries for the whole year. This type of disclosure is now a regular feature of China’s dramatic auto slowdown.

New-vehicle sales in China dropped 9.4% in June, compared to a year ago, to 2.06 million vehicles, according to the China Association of Automobile Manufacturers (CAAM). It was the 12th month in a row of year-over-year declines. For the first half of 2019, sales were down 12%. If sales continue to decline at this rate, they will drop to 21 million vehicles for the whole year, the lowest since 2014, representing a 15% drop from the peak in 2017 (estimate for 2019 in red):

 
 
https://wolfstreet.com/wp-content/uploads/2019/07/China-auto-sales-2019-Est-2H.png 

COMMENTS

Ed 40 days ago
https://wolfstreet.com/wp-content/uploads/2019/07/China-auto-sales-2019-YOY-Est-2H.png
 
 
 

Ed 40 days ago
Vehicle Sales Plunge amid India’s Shadow-Bank Debt Crisis & Contagion Fears
 
 

Shadow banks provided 40% of new loans for vehicle purchases.

Car sales in India, the fifth-largest auto market in the world, plunged 24% in June, compared to June last year, after they’d already plunged 26% in May, the Society of Indian Automobile Manufacturers reported. Year-over-year declines have been dragging on for nearly a year.

Sales of “goods carriers,” which are seen as an indication of economic momentum, dropped 18% from a year ago. Goods carriers include vehicles such as these:

 
 https://wolfstreet.com/wp-content/uploads/2019/07/India-Goods-carrier.jpg
 
 
Scooter sales dropped 15% year-over-year. Sales of motorbikes dropped 10%. Sales of mopeds plunged 22% — “an indication of a gigantic slump in economic growth and decline in demand in rural areas,” The Week explained.
 
 
 In India’s first fiscal quarter, ended June 30, sales of all two-wheel motorized vehicles combined, by far the largest category of vehicles sold in India, fell 12% to 5 million units. Passenger vehicle sales fell 18% to 712,620 units. Within this group, cars fell 23%, utility vehicles 4.5%, and vans 25.7%, according to the Society of Indian Automobile Manufacturers (SIAM).
 
 

“Probably the most prolonged de-growth phase we have seen.”

https://wolfstreet.com/2019/07/10/indias-vehicle-sales-plunge-as-shadow-banks-topple-clamoring-for-government-bailouts-amid-contagion-from-the-debt-crisis/
 
 

Ed 38 days ago

“Auto suppliers Johnson Electric Holdings and Sensirion slashed their earnings forecasts on Thursday, blaming a slowdown in car sales and pessimism about the prospects of a Chinese car sector recovery. The news is the latest to signal weaker global industrial activity…”

https://www.reuters.com/article/us-autos-suppliers-warnings/bleak-china-autos-outlook-triggers-raft-of-profit-warnings-idUSKCN1U6194?il=0


Ed 27 days ago
Aston Martin shares plunge after slump in sales across Europe
 
  
Aston Martin Lagonda’s share price plunged by 26% on Wednesday after the luxury carmaker revealed a slump in sales across Europe, blaming the impact of economic uncertainty.
 
The beleaguered company stunned investors on Wednesday by reporting an unexpectedly steep decline in demand from dealers in the UK and Europe.
 

The 106-year-old company behind Bond’s favourite car marque slashed its annual sales forecast from a range of 7,100 to 7,300, saying it now expects to sell 6,500 at most. The fall-off reflects low orders from car dealers concerned that they won’t be able to sell them.

 
The downturn was particularly acute in the UK, where sales fell by 22% in the second quarter of 2019. Sales in its combined Europe, Middle East and Africa region tumbled even further, losing 28%.
 
 
 
https://www.theguardian.com/business/2019/jul/24/aston-martin-shares-plunge-after-slump-in-sales-across-europe 
 
 

Ed 27 days ago
Nissan warns of profit plunge, set to unveil 10,000 job cuts
 
https://www.reuters.com/article/us-nissan-jobs/nissan-plans-to-cut-over-10000-jobs-globally-source-idUSKCN1UJ01D 

Ed 27 days ago
Nissan warns of profit plunge, set to unveil 10,000 job cuts
 
https://www.reuters.com/article/us-nissan-jobs/nissan-plans-to-cut-over-10000-jobs-globally-source-idUSKCN1UJ01D 

Ed 14 days ago
India's Auto Market Crashes: 200,000 Job Losses In 3 Months, One Million At Risk
 
 

"The majority of job cuts have happened in the last three months...It started around May and continued through June and July," FADA President Ashish Harsharaj Kale told PTI.

 

He further said, "Right now most of the cuts which have happened are in front-end sales jobs but if this (slowdown) continues, then even the technical jobs will be affected because if we are selling less then we will also service less, so it is a cycle."

 
https://www.indiatoday.in/business/story/auto-sector-crisis-deepens-around-two-lakh-jobs-cut-in-last-3-months-1577026-2019-08-04 

Ed 8 days ago

 Car Sales in India Drop Most in Two Decades

Passenger vehicle sales in India dropped the most in nearly two decades, with the decline extending for a ninth straight month amid a broader slowdown in Asia’s third-largest economy.

Car sales fell 36% from a year earlier to 122,956 units in July, data released by the Society of Indian Automobile Manufacturers showed. Passenger vehicle sales slumped 31%, while truck and bus sales fell 26%.

Two-wheeler sales -- a key indicator for demand in rural India -- fell by 17% year-on-year to a little more than 1.5 million units in July. Sales of trucks and buses dropped the most since February 2014.
 
https://www.bloomberg.com/news/articles/2019-08-13/car-sales-in-india-drop-most-in-two-decades-as-slowdown-deepens?srnd=premium-asia 


< Back to main category



Login now