[ET Net News Agency, 12 June 2019] Moody's Investors Service said that new policy
guidelines affecting the Chinese auto industry support Moody's projection of a 2% growth
in auto unit sales for the country in 2019.
"The new policy guidance follows weak auto sales in China so far in 2019," says Gerwin
Ho, a Moody's Vice President and Senior Credit Officer.
According to the China Association of Automobile Manufacturers, auto sales were down 12%
year-on-year for the four months between January and April 2019. The decline was because
of weaker corporate and consumer sentiment, due to the ongoing US-China trade dispute, and
also the high base of auto sales during the first half of 2018.
Moody's explained in its just-released report that on 6 June 2019, the Government of
China announced policy guidance on promoting automobile renewal, upgrading and recycling,
by encouraging the supply of fuel-efficient and new energy vehicles, the purchase of new
energy vehicles, vehicle replacements, vehicle upgrades, used vehicle sales, auto
financing, traffic infrastructure and vehicle scrappage systems, while discouraging
controls on vehicle ownership. (KL)