China’s Passenger Car Sales Dip 13.4% as Price War Rages

China’s passenger car market remained sluggish in the first quarter despite a fierce price war, with domestic retail sales of passenger cars falling 13.4% year-on-year to 4.261 million vehicles, data from the China Association of Automobile Manufacturers (CAAM) showed.

The downturn underscores the challenges faced by the world's largest auto market as it grapples with an economic slowdown and rising competition. China’s auto market plunged into a brutal price war late last year as carmakers — from electric vehicle startups to joint ventures of global brands — race to cut prices. They are trying to shore up sales that plunged after government incentives expired at the end of last year and as consumers remain hesitant about spending.