Soaring Chinese investments to blame for sinking auto sales?
Stocks Boom As Car Sales Slump
According to Bloomberg, the exchange in China has already doubled in value over the past year. Many buyers have put off the purchase of an expensive new car in favor of getting in on the boom. As an indication of how huge this rush has been, as many people have started trading so far in 2015 as in the last four years combined.
This boon to the Chinese economy is wrecking havoc on the vehicle market, though. "People are not buying cars, no matter how big the incentives. People want their money in the stock market, " Cui Dongshu, secretary general of China's Passenger Car Association, said to Bloomberg.
China's domestic automakers are actually benefiting from this changing market, though. Their inexpensive models are selling great, and brands like Great Wall and Geely are seeing volumes improve by 26 percent and 25 percent, respectively, according to Bloomberg.
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