China's vehicle sales and exports are headed for a slowdown amid sluggish demand and lingering external uncertainties, a major Chinese industry association said on Wednesday.
Vehicle sales are expected to grow 1 percent this year, cooling from 9.4 percent last year, data from the China Association of Automobile Manufacturers (CAAM) showed.
Sales growth of electric vehicles and plug-in hybrids are set to slow to 15.2 percent from 28.2 percent while vehicle exports are likely to rise 4.3 percent after a stronger-than-expected 21.1 percent growth in 2025, CAAM data showed.
Domestic demand remains insufficient as residents' unsteady income outlook and job insecurity concerns weigh on buying, the association said.
Further, it said the regulation over zero-mileage used cars, a tactic used by automakers to sell new cars as second-hand vehicles at heavily discounted prices, will intensify inventory pressure at home in the short term.
Geopolitical uncertainties and economic and trade tensions will put downward pressure on exports, the association said, adding that a push for localizing production by Chinese automakers would also dent exports.
REUTERS
