Auto sales slow in China

China new vehicle sales reflect economic slowdown decline

As the nation settles into the "new normal" of single digit growth, carmakers are seeing sales and deliveries in one of the world's most valuable auto markets decline and are responding accordingly.

BMW has announced it will begin reducing production in May 2015, while also decreasing prices. VW, GM and other industry stalwarts are also cutting production and prices to accommodate the shift.

In 2013, vehicle sales grew by more than 15%, but are expected to reach between 7-8% in 2015, according to the China Association of Automobile Manufacturers. While passenger car sales are slowing, SUV, MPV and minivan sales continue to grow, especially in some of China's less affluent provinces where they are commonly used as an informal shuttle service.

Car sales growth increased by just 4% year-on-year in April 2015, down from 9% year-on-year volumes in the previous month; a worrying sign for many in the industry. Despite the slowdown, automakers are still investing heavily in new production units and factories across China.