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GRAPHIC: China’s auto market stalls – tmsnrt.rs/2QDhPUR. Consumers and car dealers in Pingdingshan all painted a similar picture. The city, 150 kilometers south of the provincial capital Zhengzhou, went through boom years from the 1990s, buoyed by a flourishing coal industry ferragamo cufflinks uk uk sale. But amid a nationwide shift to cut reliance on polluting industries and a sharp shift away from coal, the city has suffered. Pingmei Shenma Group, one of the area’s biggest employers, has cut back coal capacity and seen profits fall – creating a ripple effect through the local economy..

The group, like many state-owned firms around the country, reaches far into the community: it operates hospitals and schools, and provides pensions, subsidized housing for workers, water, heating and power. During the growth years, a family car became a symbol of status and success in the city, driving growth faster than the national average. That has now changed. “The situation here is really bad. We sold 40 percent fewer cars in October than September,” said Zheng Shuke, a manager at an SAIC-VW dealership near a busy freeway outside Pingdingshan. “This is very unusual in the 6 years I’ve been an auto dealer.” ferragamo cufflinks uk uk sale.

“I think the biggest reason is that fewer and fewer people have enough money to buy cars,” he added. “Our economy used to rely on natural resources. However now due to capacity cuts, fewer people can get the iron rice bowl,” a reference to state firms cutting cradle-to-grave welfare support that he said had underpinned spending confidence ferragamo cufflinks uk uk sale. Reuters spoke with 20 consumers, car dealers like Zheng, auto finance executives and government officials, mostly in and around Pingdingshan, who said the car market in the Henan province city had seen a sharp slump this year as consumers tightened their belts..

Henan province is one of China’s biggest by auto sales with over a million passenger car units sold this year. But growth has stalled sharply, according to data from local consultancy Daas-Auto ferragamo cufflinks uk uk sale. Henan auto sales dropped 18 percent in October after a 25 percent drop the month before, outstripping a fall in sales nationwide of almost 12 percent last month, the fourth straight month of declines. In response, car dealers in Pingdingshan have cut prices to lure buyers, according to dealers and adverts circulated on local social media..

“We’re offering discounts, but these just don’t seem to be working,” said Zheng, the car dealer. INVENTORY BUILD-UP. Across town at a ten-year-old dealership for GM-linked Wuling-Baojun cars, manager Jiang Long said customers had dwindled this year, especially since June. In front of the store 100 new cars waited to be sold, but customers were in short supply when Reuters visited. Jiang said sales were down 40-60 percent versus last year. “This is just part of our inventory, we have more in other places,” said Jiang. “We make many calls to old customers to attract them to buy new cars, but they just don’t seem enthusiastic this year.” ferragamo cufflinks uk uk sale.