China: Car sales rate decreasing

China dealers enjoyed only a 13.6% sales rise in July, compared to the 19% of June. This is the lowest monthly increase that has been in the industry after March 2009 due to the lack of confidence from the consumers. The wholesaling sector of the car sales in July was by 946,000 vehicles higher than last month(13.6%), compared with the 19% increase in June, according to a press release from the China Industry Automotive Association. While the pace of new sales falling, the stock of unsold cars is increasing due to rising inflation that reduces the disposable income of Chinese consumers, offering them no really potentials to buy a new car. According to the Daiwa Institute of Research, the car sales are likely to decrease after September. We should note here that during last year’s July, the car sales increased by 70.5% thanks to government incentives to enhance sales in the industry.