China's auto sales contraction worsens in February

A cat walks in between a row of new Honda vehicles stored underneath an overpass in Beijing, Thursday, March 14, 2019. The downturn in China's auto market worsened in January and February as an economic slowdown and a tariff fight with Washington chilled demand in the industry's biggest global market. Sales of SUVs, minivans, and sedans plunged 17.5 percent from a year earlier to 3.2 million SUVs, minivans and sedans in the first two months of 2019, according to an industry group, the China Association of Auto Manufacturers. (AP Photo/Andy Wong)
Dust-covered new Toyota cars stored underneath an overpass in Beijing, Thursday, March 14, 2019. The downturn in China's auto market worsened in January and February as an economic slowdown and a tariff fight with Washington chilled demand in the industry's biggest global market. Sales of SUVs, minivans and sedans plunged 17.5 percent from a year earlier to 3.2 million SUVs, minivans and sedans in the first two months of 2019, according to an industry group, the China Association of Auto Manufacturers. (AP Photo/Andy Wong)
FILE - In this Dec. 11, 2018, file photo, a beam of sunlight is cast on vehicles on a city ring-road clogged with heavy traffic during the morning rush hour in Beijing. The downturn in China’s auto market worsened in January and February as sales plunged 17.5 percent from a year earlier. (AP Photo/Andy Wong, File)
An SUV moves past dust-covered new Toyota cars stored underneath an overpass in Beijing, Thursday, March 14, 2019. The downturn in China's auto market worsened in January and February as an economic slowdown and a tariff fight with Washington chilled demand in the industry's biggest global market. Sales of SUVs, minivans, and sedans plunged 17.5 percent from a year earlier to 3.2 million SUVs, minivans and sedans in the first two months of 2019, according to an industry group, the China Association of Auto Manufacturers. (AP Photo/Andy Wong)
People ride bicycles past new Honda cars stored underneath an overpass in Beijing, Thursday, March 14, 2019. The downturn in China's auto market worsened in January and February as an economic slowdown and a tariff fight with Washington chilled demand in the industry's biggest global market. Sales of SUVs, minivans, and sedans plunged 17.5 percent from a year earlier to 3.2 million SUVs, minivans and sedans in the first two months of 2019, according to an industry group, the China Association of Auto Manufacturers. (AP Photo/Andy Wong)
A bus moves past dust-covered new Toyota SUVs stored underneath an overpass in Beijing, Thursday, March 14, 2019. The downturn in China's auto market worsened in January and February as an economic slowdown and a tariff fight with Washington chilled demand in the industry's biggest global market. Sales of SUVs, minivans, and sedans plunged 17.5 percent from a year earlier to 3.2 million SUVs, minivans and sedans in the first two months of 2019, according to an industry group, the China Association of Auto Manufacturers. (AP Photo/Andy Wong)

BEIJING — The downturn in China's auto market worsened in January and February as an economic slowdown and a tariff fight with Washington chilled demand in the industry's biggest global market.

Sales of SUVs, minivans and sedans plunged 17.5 percent from a year earlier to 3.2 million SUVs, minivans and sedans in the first two months of 2019, according to an industry group, the China Association of Auto Manufacturers. Total vehicle sales, including trucks and buses, fell 15 percent to 3.8 million units.

The drop in sales of passenger cars in January was 15 percent.

Economists and industrial analysts often combine the first two months of the year when looking at consumer activity to screen out the effect of the Lunar New Year holiday, when factories close for up to two weeks and commercial activity falls.

Chinese consumers are putting off big purchases amid an economic downturn that saw growth last year fall to a three-decade low of 6.6 percent. Trade tension with Washington is fueling consumer jitters.

The auto slump is squeezing revenue for global and Chinese automakers that are spending heavily to meet government targets to develop electric vehicles.

Last year's auto sales suffered their first decline in nearly three decades, calling 4.1 percent from 2017 year to 23.7 million.

The downturn has prompted suggestions Beijing will cut sales taxes or offer other incentives.

Sales by Chinese brands fell 23 percent to 1.3 million units in January and February, according to CAAM. Market share for Chinese brands shrank by 3 percent compared with the same time last year to 41.8 percent.

Growth in sales of pure-electric and hybrid vehicles, which Beijing is promoting with subsidies, rose 98.9 percent over a year ago to 148,000 units.

Sales of SUVs, usually a bright spot for the industry, contracted 18.6 percent to 141,000.

Must Read

Britain's May seeks out new trading relations post-Brexit

Sep 4, 2016

British Prime Minister Theresa May says she intends to seize new trading opportunities for a...

China's electric vehicle industry shaken by scandal

Sep 13, 2016

China's electric vehicle industry, a flagship for Beijing's technology ambitions, has been rocked...

Asian markets lower after Wall Street decline

Sep 15, 2016

Asian stock markets were mostly lower Thursday following Wall Street's decline in light trading...

Taiwan loses diplomatic ally in move welcomed by Beijing

Dec 21, 2016

Taiwan has condemned the African island nation of Sao Tome and Principe's "abrupt" move to break...

China's 1st aircraft carrier heads for Western Pacific

Dec 25, 2016

China's Defense Ministry says the country's first aircraft carrier has set off for the Western...