Bloomberg agency's forecasts indicate a projected 5.9% decline in passenger car sales in China for June compared to the same period last year, totaling approximately 1.8mn units. Analysts attribute this decrease in demand to the overall slowdown in economic growth.
Goldman Sachs, an American investment bank, recently adjusted its economic growth forecasts for China in 2023 and 2024, lowering them from 6% to 5.4% and from 4.6% to 4.5%, respectively.
UBS, a Swiss bank, and JPMorgan Chase and Bank of America, both American banks, also revised their GDP forecasts for China, predicting a decline for this year.
The Chinese government, on the other hand, forecasts a 5% growth in the country's gross domestic product for the current year.
The China Automobile Association informs that car sales in China showed a modest increase of 4.2% in the first five months of this year compared to the same period in the previous year.
Despite this growth, experts view it as relatively modest, especially considering the significant price drops of certain car models, reaching up to 40%, due to intense competition. To stimulate demand, the government has implemented various incentives for car purchases.
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