The Chinese car market has declined every single month in 2019, which means it has continued its losing streak to 18 consecutive months. One little ray of hope is that December 2019 showed the lowest rate of declines of the streak at -0,9%, and all the double digit losses were limited to the first half of the year. A grand total of 21,07 million passenger cars were delivered to Chinese dealers in China in 2019, which is 9,5% lower than 2018 and 13,4% lower than the peak of 24,3 million in 2017. These figures exclude commercial vehicles, minivans and imported cars and reflect wholesale deliveries from the factory to the dealers. In the short term, the Beijing government is not planning any incentives to prop up the market, but it has ended its reduction of subsidies on one of the fastest growing segments of the Chinese car market: that of EVs and plug-in hybrids. Rather, the government seems to see this market contraction as an excellent opportunity to consolidate the market as (too) small players will be forced to close down or be taken over, while the larger state-owned carmakers also feel extra pressure to merge their operations and cut loss-making domestic brands. Also, China’s central government has pressured most major cities and provinces to adopt State 6 emissions rules (which are similar to the Euro 6 standards) on July 1, which caused local dealerships to offer steep discounts on vehicles that didn’t meet these standards. This is one of the reasons why wholesales have reduced their decline in the second half.