China's PC in Automobile Industry

The automobile industry is one PC’s main downstream industries. Currently, China PC market is stable-to-decreasing after hitting highs. How does the automobile industry perform in 2017? How does this industry impact the PC market?

According to China Association of Automobile Manufacturers, from January to August, the growth rates of both production and sales of automobile obviously slowed down.

In 2015, China issued policies and charged only 5% purchase tax for vehicles under 1.6L. The purchase tax was adjusted to 7.5% in 2017 and 10% in 2018. All these measures aimed to boost the automobile industry.

In the meantime, policies were issued to boost the new energy vehicles market.

The new subsidy policies for new energy vehicles was less favorable. The financial subsidy will gradually be canceled by 2020. As a result, the competition in the new energy vehicle market will be fierce. However, as the automobile industry developed much slower than last year, the PC demand in this industry may remain tepid.