China: Demand for new cars drop, used cars rise
Despite China's attempts to encourage imports, the number of new cars being exported to China in containers have fallen by over 50%. Compared to last year, just over 3,200 new cars were shipped from the United States to China during the first quarter.
The economic uncertainty in China, as well as the fears of a recession are stacked against new car exporters. According to McKinsey's latest report, the rate of annual growth in new car sales will drop by half for the next five years. As a result, used cars are growing in popularity. The report shows nearly half of all consumers considered a used vehicle when shopping for a car, versus 11% of buyers in 2011. The status symbol of owning a new car is slowly fading in China.
Top car brands shipped from the US to China in Q1 2016: