China auto sales drop for third straight month as domestic demand weakens

Domestic sales fell 19.5% to 1.4 million units in January, while vehicle exports surged nearly 50%. Experts attribute the volatility to holiday timing.

Domestic car sales in China CNCN fell 19.5% year-on-year in January to 1.4 million vehicles, extending a three-month decline in the world's largest auto market. The figures, announced today by the China Association of Automobile Manufacturers, show a significant divergence as car exports rose 48.9% to 589,000 units during the same period.
The 19.5% drop in domestic volume to 1.4 million vehicles marks the third consecutive monthly decline for the industry. This trend reflects cooling domestic sales even as international demand for vehicles produced in the region remains strong. The shifting competitive dynamics are particularly evident within the Chinese auto sector, where manufacturers are balancing a softening home market with aggressive growth abroad.
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