With the nation’s automotive market showing some unexpected signs of weakness, nervous bureaucrats have rolled out an incentive effort loosely modeled upon America’s controversial Cash-for-Clunkers program.
After years of double-digit sales gains, what is now the world’s largest automotive market posted 14% decline in sales last month compared to April. But whether that was a temporary aberration or signs of a longer-term slowdown remains to be seen.
Either way, it is creating deep worries in a country where automotive demand has helped fuel a booming economy. And industry leaders are fretting about the billions they are spending to expand capacity to match earlier sales expectations.