Hong Kong (CNN Business)China’s car sales rose for the first time in a year last month, but the world’s largest market remains stuck in a deep slump that shows little sign of ending soon as the country’s massive economy slows.
Geely (GELYF), one of China’s biggest car makers, said late Monday that its net profit probably plunged by 40% in the first half of the year. In June alone, the company’s car sales fell 29%.
The slump was caused mostly by a bigger decrease in China sales than it had expected, the company said. Geely’s sales fell 33% in its home market.
Global brands are suffering, too. Ford (F) said last week that it sold nearly 22% fewer vehicles in China during the second quarter than in the same period a year ago. General Motors (GM)posted a 12% drop in vehicle sales in China for the quarter.
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