(Yicai Global) Aug. 20 -- China's auto sales could fall to between 24 million and 26 million this year as the nation's auto market continues to dip after decades of growth, according to the deputy director of the China's State Information Center.

Demand is sliding primarily for two reasons: a waning rise in purchasing power as economic growth slides and a lack of incentives such as buyback schemes, also due to slower economic expansion, Xu Changming said at the Global Automotive Industry Innovation Conference yesterday.

China's auto market has racked up at least 28 million annual sales over the past three years, but is unlikely to reach that figure in 2019, he added. The sector shrunk last year for the first time since the 1990s.

Carmakers should enhance their strategic marketing and base future research on actual consumer demand, business positioning and market segmentation, Xu said, adding that they should continue to add capacity and strengthen their strategic partnerships.

Strategic marketing considers the impact of competition and the environment, requiring marketers to plan holistically to meet corporate goals.

Editor: James Boynton