China is set to record its first annual decline in car sales in decades -- at least, if the downward trend of the last four months continues. Sales in the world’s biggest car market fell 11.7% in October.
The gathering gloom about Chinese car sales, especially among foreign manufacturers, misses a fundamental point, however: growth in automotive services in the country is offsetting the decline in vehicle sales. We estimate that overall Chinese "automobility" revenues will rise this year to $590 billion, up $10 billion from last year. This figure is on track to top $1 trillion by 2025.