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Business / Auto Global

Slowdown in China to hit world's carmakers

(Agencies) Updated: 2015-09-17 09:45

Dudenhoeffer predicted that the premium sector, dominated by German brands such as Audi, BMW and Mercedes-Benz, would see stagnant sales in China this year and a decline of 4 or 5 percent in 2016.

Mercedes-Benz, which is owned by Daimler, is still something of an exception. For a long time it trailed behind rivals Audi and BMW. But a range of new products enabled it to notch up growth of 28 percent in China during the period from January to August.

In contrast, the other two are hurting, with Audi sustaining a drop in sales of 4.1 percent in China in August, and a drop of 0.8 percent in the first eight months.

BMW saw its sales fall by 1.4 percent in August, but managed to clock up a modest 0.9-percent increase in sales in the first eight months.

"Growth in China has slowed, without doubt. But I believe demand for mobility will remain very strong," said Volkswagen CEO Martin Winterkorn.

With just 70 cars for every 1,000 people in China, compared to with 500 for every 1,000 in Germany, there is still substantial potential for growth in the medium and long-term, analysts said.

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