Data released by the China Passenger Car Association showed that car sales in China declined again in June, recording a third consecutive drop, despite government measures aimed at stimulating consumer demand.
According to the report, passenger vehicle sales fell by 6.9% per annum to 1.78 million units in June. Thus, the rate of sales decline accelerated sharply compared to May (-2.2% per annum).
In June, the European Union announced the introduction of extra provisional duties of up to 38% on Chinese electric car imports because of "unfair" state subsidies, despite Beijing's warnings the move would unleash a trade war. But company reps in both China and Europe are critical of the steps. Germany's VDA auto industry association said there was a "real risk of escalation in the trade conflict with China" if the EU pushed ahead with the tariff rises. "Chinese countermeasures could severely hit the European economy", especially sectors with large exports to China, the VDA said.