China's car market to return to growth this year, executives say

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China's car market will return to growth in the second half of this year du...

SHANGHAI - China’s car market will return to growth in the second half of this year due to government support although the days of high single or double-digit growth are over and consolidation is likely, senior automotive executives said on Tuesday.

Recent moves by the Chinese government to cut taxes, carmakers’ plans for new model launches as well as the hopes that the U.S.-China trade spat will soon be resolved could start to turn things around, the executives said. The decline in Chinese automotive sales has already started to slow. They fell by 5.2 percent in March, the smallest decline since August 2018.

Some firms were more optimistic with luxury carmaker Rolls-Royce Motor Cars saying that it would likely achieve double digit sales-growth in China again this year, although below 2018 levels.

 

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