China’s Car Sales Decline as End of Subsidies Hurts Demand

China’s passenger car sales dropped in October for the first time in more than a year as the gradual phasing out of local government trade-in programs add to ongoing headwinds that are hurting demand.

Retail sales of passenger vehicles, including sedans, SUVs, and minivans, fell 0.8% in October from a year earlier, according to data from China’s Passenger Car Association. Excluding a dropBloomberg Terminal in January due to the Lunar New Year holiday, when sales typically weaken, that’s the first contraction since August 2024.