Passenger-car sales in China not doing so great anymore

Article by Christian A., on December 11, 2011

Passenger-car sales in China had its slowest ever pace in six months. This is believed to be due to monetary tightening and the end of government incentives. The demand for Chery Automobile Co. and Honda Motor Co. vehicles dropped. Last Friday, the China Association of Automobile Manufacturers said that wholesale deliveries, such as sport-utility vehicles and minivans, increased by 0.3% to 1.34 million units last month.

In comparison, the five analysts surveyed by Bloomberg arrived at a 0.5% median estimate. It is considered the most sluggish pace since May, when sales fell by 0.1% to 1.04 million.

Last year, China’s sales increased by 32%. But the current year’s sales are lower as purchases are discouraged due to inflation, higher interest rates and the end of a two-year stimulus plan. The group added that deliveries for 2011 may have its smallest increase during the past 13 years, adding to indications of the slowing economy in China.

Yale Zhang, managing director at industry consultant Autoforesight Shanghai Co., said that inflation and gasoline prices continue to be high while the outlook remains uncertain. Zhang added that as a result, the consumers' will to purchase has been reduced.

The association, which has reduced its market forecast two times so far this year, believes that the vehicles that will be shipped to Chinese dealerships will increase between 3% and 5% in 2011. In 2010, this figure rose by 32% due to tax breaks and rebates for buyers in rural areas.

This is the first time that the Chinese market is increasing at a slower rate than the U.S. light-vehicle retail sales, according to figures from the association that go as far back as 1998. According to Dong Yang, deputy head of the association, China's auto sales are "very likely" to gain over 2% this year.

Topics: china, sales

If you liked the article, share on:

Comments

Recommended

Not a few agree that the Volkswagen Polo news a styling overhaul. While this supermini still looks good as it is now, the latest facelift was around three years. With...
by - April 27, 2017
They say that when the going gets tough, the tough get going. That’s what Harvey Payne did with his Chevrolet Bolt. Ever since he bought it, it had been experiencing...
by - April 27, 2017
What defines a coupe? Well, according to the dictionary, “it is a car with a fixed roof and two doors”. Ok, now that it is clear, when does one not...
by - April 27, 2017
Back in 2013 was when the first hot hatch was released, that was the original A45 by Mercedes-AMG, carrying a hand-built 2.0 liter M133 turbo mill. It was then then...
by - April 27, 2017
BMW dealers have a problem, a good problem. The demand for the 2017 BMW 5 Series is very high, they cannot attend to all the customers. But actually, supplies are...
by - April 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries