China October auto sales stall as sedan demand shrinks

BEIJING – An industry group reports China’s auto sales growth fell close to zero in October as demand for sedans contracted.

The China Association of Automobile Manufacturers said Wednesday sales rose by 0.4 per cent over a year earlier to 2.3 million units, down from September’s 4.1 per cent rate. Sales of sedans shrank by 5.4 per cent, offset by a 13.9 per cent gain for SUVs.

Chinese auto sales have struggled this year after a temporary tax cut boosted 2016 growth to 15 per cent. Sales contracted in April and May before growing weakly in recent months.

For the first 10 months of the year, sales rose just 2.1 per cent over the same period of 2016.