How will China’s yuan devaluation impact the auto industry?

Stock markets, financial investors and foreign companies relying on China for sales or production have been reeling in the wake of the shock decision by China's central bank to devalue the yuan. On 11 August 2015, the People’s Bank of China (PBoC) lifted the daily fixing rate of the country’s currency against the US dollar by 1.9%, resulting in a 1.8% devaluation of the yuan against the dollar which, according to Natixis, was the currency’s biggest one day move since July 2005 when the government first introduced the exchange rate reform.

As analysts pore over the underlying reasons behind the devaluation, and look to understand what impact it will have, especially when combined with the country’s general economic slowdown, vehicle manufacturers, luxury goods makers and tech companies in particular have begun reacting to falling stocks in the hours and days since the news broke.