Jan 08, 2019 (China Knowledge) - Geely Automobile Holdings has missed its sales target for 2018 and forecasted flat sales for this year, alluding to a weak Chinese car market ahead.
The company achieved sales of 1.51 million units last year, falling short of its targeted 1.58 million units in sales by 5%. Last December, the company saw its sales for the month fall by 44% YoY.
Geely’s poor sales point towards to fact that China’s car market may be reaching a turning point after experiencing more than two decades of robust growth. Chinese carmakers are now trying to readjust for lower consumer demand and will likely post lower sales targets for the year.
According to the China Association of Automobile manufacturers, the country may see its first drop in car sales in 2018, which will be the first drop since 1992.
China’s auto industry has been one of the pillars of the country’s economic growth over the past years with the performance of the industry at times being used as a gauge to measure the strength of the country’s economy.
As such, the government may introduce new tax incentives to promote car sales should the car market continue to see major declines over the year.
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