As China Auto Sales Slow, Industry Braces for New Regulations

Auto sales in China declined for an 11th straight month in May, with the slump in demand showing no sign of easing and the country’s automotive industry bracing for losses tied to new emissions standards, The Wall Street Journal reported. Sales for the latest month fell 16% from a year earlier, to 1.91 million vehicles. New vehicle emission standards are set take effect July 1, and dealers are scrambling to sell their older vehicles before they are disallowed at the end of June, often by offering steep discounts. While that could deliver a temporary boost in unit sales, the discounting is likely to worsen financial losses for manufacturers and dealer groups in China, analysts said. The new regulations, coming a year sooner than planned, will hit an industry already dealing with a dramatic slowdown. Read more