A Chinese government official has sounded the most direct warning yet about the nation’s slumping car industry. China’s light-vehicle sales will come in under 30 million units this year and may even fall below 2017’s tally, Wu Wei, a divisional director under China’s top economic planning body, said Wednesday. Automakers and suppliers shouldn’t expand production capacity blindly, and instead should focus more of their investments on research and product development, according to Wu. A drop would mark the first full-year slide in China’s car sales in about two decades, coming on the heels of four straight months of declines as slower economic growth and a trade conflict with the U.S. hurts demand. Car sales in China totaled 28.9 million units last year, according to the China Association of Automobile Manufacturers.
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