The Chinese automobile market may be about to turn a corner, according to The Wall Street Journal's Jacky Wong.
After recording 13 straight months of declines, the market saw only a 4.3% drop in July in what could be considered a sign the downturn has bottomed out.
Beijing is also ramping up pressure on local governments to support the purchase of new-energy vehicles and suggesting that cities consider removing or relaxing their restrictions on auto purchases as part of 20 policy proposals to boost consumption. While the timing of those initiatives is uncertain, they are seen as supportive of demand.
Also in the mix, some of the concerns about the overall economy in China could be overstated with GDP slowing to the 6% range. South China Morning Post observes that the Chinese economy will add nearly $900B in new output this year, more than the slower-growing U.S., Europe and Japan combined.
Manufacturers have been investing heavily in China despite the volume drops based off long-term demand projections and the expectation for a trade war resolution down the road.
Related manufacturers: Nio (NYSE:NIO), Great Wall Motors (OTCPK:GWLLF, OTCPK:GWLLY), BYD (OTCPK:BYDDY, OTCPK:BYDDF), Kandi Technologies (NASDAQ:KNDI), Volkswagen (OTCPK:VWAGY), Tesla (NASDAQ:TSLA), Daimler (OTCPK:DDAIF), Ford (NYSE:F), Geely (OTCPK:GELYY, OTCPK:GELYF), Guangzhou Automobile Group (OTCPK:GNZUF), Toyota (NYSE:TM), Nissan (OTCPK:NSANY), Honda (NYSE:HMC), General Motors (NYSE:GM), BAIC (OTC:BCCMY), Zotye, state-owned SAIC Motor and Dongfeng Motor (OTCPK:DNFGY).
Auto supplier stocks: Adient (NYSE:ADNT), Allison Transmission (NYSE:ALSN), American Axle & Manufacturing (NYSE:AXL), Aptiv (NYSE:APTV), Autoliv (NYSE:ALV), BorgWarner (NYSE:BWA), China Automotive Systems (NASDAQ:CAAS), Cooper-Standard (NYSE:CPS), Dana (NYSE:DAN), Delphi Technologies (NYSE:DLPH), Douglas Dynamics (NYSE:PLOW), Garrett Motion (NYSE:GTX), Gentex (NASDAQ:GNTX), Gentherm (NASDAQ:THRM), Johnson Controls (NYSE:JCI), Lear (NYSE:LEA), LKQ(NASDAQ:LKQ), Lydall (NYSE:LDL), Meritor (NYSE:MTOR), Modine Manufacturing (NYSE:MOD), Monro (NASDAQ:MNRO), Motorcar Parts of America (NASDAQ:MPAA), Standard Motor Products (NYSE:SMP), Superior Industries (NYSE:SUP), Tenneco (NYSE:TEN), Tower International (NYSE:TOWR), UQM Technologies (NYSEMKT:UQM), Veoneer (NYSE:VNE), Visteon (NASDAQ:VC), Voxx International (NASDAQ:VOXX), WABCO (NYSE:WBC) and Westport Fuel Systems (NASDAQ:WPRT).
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