The number of cars delivered dropped 21.2% y-o-y to 1,773 units.
"Continued weak consumer sentiment has resulted in a consumption downgrade in the car market, with consumers migrating significantly towards mass-market and price-competitive brands at the expense of premium brands," says the company in its business update.
According to Trans-China Automotive, which distributes mainly Continental brands, the emergence of electric vehicles, mainly by new entrants, has upended the market.
In response, the industry had to cut prices, "further intensifying" the "hyper-competitive" conditions.
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"It is difficult to predict when these extremely competitive conditions will subside," says the company, which is led by executive chairman and CEO Francis Tjia.
Trans-China Automotive shares last traded at 4.9 cents. Its Nov 2021 IPO was offered at 23 cents.
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