China Auto Sales Crash: 29% Drop Signals Q4 GDP Drag

Bearish

What Happened

China's domestic passenger vehicle sales are expected to plunge 29% year-over-year in September, the steepest decline this year, due to the fading trade-in program and a 5% EV purchase tax.

Bottom Line

China's auto sector faces a deepening domestic slump that will drag on Q4 GDP, with exports only partially offsetting the weakness.

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