The stagnation in China’s auto market may be here to stay.
New forecasts say the country will sell a total of 28 million vehicles next year, the same number expected this year, the government-backed China Association of Automobile Manufacturers said on Friday.
The bad news comes after the world’s largest auto market posted a fifth monthly decline in a row.
One major factor was the declining purchasing power among buyers from smaller cities. Rising property costs and a greater outflow of labor from smaller to larger cities have taken a toll on overall consumer spending.
Analysts also said the market has too many players and that a consolidation is to be expected.