In June, China imported 87-percent fewer cars than the same month last year, according to the China Automobile Dealer’s Association. That represents just 15,000 cars reaching a country of 1.4 billion people. This report also indicates that imports on the year so far have dropped by roughly 22% as well.
It seems this massive drop in imports could be related to the ongoing trade conflicts between the US and China. In May, China announced they would cut tariffs down from 25% to 15%. However, after hearing the news of impending US tariffs, China raised import tariffs to 40%. This large jump has resulted in a huge loss of sales, which could spell bad news for US automakers.
American Players in China
Jeep has caught some traction in China in recent years. They’ve even gotten their own model, with the recent release of the Jeep Grand Commander. The Grand Commander was first revealed at the 2019 Beijing Auto Show, and represents the brand’s first three-row SUV. We’ll soon get a three-row SUV as well in the form of the Grand Wagoneer, but it’s unclear exactly what the U.S. version will look like at the moment.
Another automaker that has found success in China is Buick. During the second quarteri n 2018, Buick sold 230,000 units in China. GM reported total sales in China during this period of 858,000 units, meaning Buick makes up over one-quarter of GM’s sales in the Chinese market.
While these American brands have had recent success in China, it seems sales are likely going to drop dramatically as retaliatory tariffs by both China and the United States take effect.
The 90% drop in June is certainly alarming for manufacturers, and we will have to see if sales continue to drop going forward.
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One of Buick’s most recent additions to the US market is the Buick Regal TourX, an AWD station wagon. Check out our review below: