Emissions Standards: Another Setback for China’s Auto Sector

Authorities in major economic regions of China have adopted strict new vehicle emissions standards one year ahead of schedule, and the industry has been scrambling to liquidate inventory and readjust production processes. This adjustment will hurt auto sales and production in Q3, though conditions will likely improve modestly in Q4. The size of the disruption to regular manufacturing and sales processes and the strain placed on auto dealers suggest that a stronger upturn will not occur until early in 2020.

Posted July 10, 2019
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