China outlook takes 400,000-unit hit

A combination of high inventory levels and weakening demand are clouding the near-term forecast for China's new vehicle market. June's seasonally adjusted annual rate (SAAR) fell to 19 million units, the lowest in 11 months. Warning of "a fairly pessimistic" outlook for the third quarter this year, LMC Automotive has lowered its full-year forecast for passenger vehicle sales by around 400,000 units.