Chinese auto industry to decline in coming years

Published:

On: Jan 2020

The automotive market of China will observe major reduction in 2020 and the next year, after displaying sales drops for two consecutive decades, stated by the senior authority. Both vehicle sales and production are expected to reach nearly 25 million units in this ongoing year, flat or comparatively down from 2019, the minister of industry & information technology, Miao Wei said during a press conference.

The Chinese auto sector struggled with tricky issues like insufficient research input and vital technologies, some short-term impacts from reductions in new energy car subsides and harsh emission standards for conventional petrol-powered vehicles. He added that the industrial confidence has renowned as auto sector production posted yearly growth in the month of November after pro-consumption policies took impact.

China will continue to impel for higher-quality development in the auto industry, restore market vitality, motivate auto producers to enhance overseas industries and provide a level generating field to whole Chinese as well as foreign-invested firms. When discussing about the United States automaker Tesla’s factory in Shanghai, Miao stated that it’s nation’s first completely foreign-invested new energy vehicle plant.

The production of the gigafactory started on 7th January, last year. In ten months, it entered trail construction. On 30th of December, the first batch of 15 China-produced Model 3 vehicles were delivered. He stated that, this represents Chinese spunky resolve to implement an international business environment and drive for a new portion of opening up. Admitting that lower costs of Tesla vehicles will bring pressure to local new energy car producers. Miao stated that, it will provide advantage to Chinese consumers and serve as an encouragement to drive automakers to reinforce innovation and promote their competitiveness.