China car sales hit by stockmarket rout

Beijing

CARMAKERS in China are finding themselves in a "lose-lose situation" after a world-beating stockmarket boom that diverted funds away from purchases turned into a bust, further denting demand in the world's largest car market.

An increasing number of car buyers in China are cancelling their purchases and risking forfeiture of their down payments after a stockmarket rout that has erased about US$3.2 trillion in value, according to Cui Dongshu, secretary-general of China's Passenger Car Association.