PART – The vehicle market in China grew for a fourth straight month, driven by strong government stimulus and a strong recovery in demand for commercial vehicles.
Sales in China rose 16.4% in July from a year earlier to 2.11 million vehicles, the Chinese government-backed Automobile Manufacturers Association said on Tuesday.
Since May, the world’s largest vehicle market has recorded year-on-year sales growth, in low double-digit percentages, as Beijing eases restrictions and offers favorable policies and subsidies in an effort to revive the economy and increase spending.
The CAAM kept its forecast for a 10% to 20% drop in sales this year, but warned China’s exports and supply chain could suffer if another wave of the coronavirus were to hit in the fall and winter.
Nissan Motor Co. said last week that its sales in China increased by 11.6% in July, compared to a year earlier. SAIC Motor Corp., China’s largest carmaker for sales, said last week that its July sales were up 4% from a year earlier.
CAAM follows the vehicle wholesale market and warned on Tuesday that car dealers should pay attention to inventories, which rose 11.6% last month. Demand for retail was weaker in July, industry groups suggested, as consumers flocked to the rising stock market and delayed vehicle purchases in hopes of more incentives and subsidies coming from central and local governments.
“Car dealers are facing increasing pressure to cut prices in the second half in order to meet their annual targets,” the state-backed China Automobile Dealers Association said last week, based on a survey of vehicle dealers nationwide.
Sales of new energy vehicles, including electric cars, rose 19.3% last month from a year earlier to 98,000 vehicles, CAAM said, marking the first month of growth in a year.
Tesla Inc. sold 11,014 Model China made in China domestically in July, according to the China Passenger Association.
The Chinese government is relying on electric vehicles to spur new demand, especially in lower-income rural areas. The coronavirus has driven consumer sentiment and disrupted the functioning of hailed companies, which are big buyers of electric vehicles.
Beijing last month launched a new campaign to encourage electric vehicles, endorsing more than a dozen models of electric cars produced by Chinese carmakers and encouraging local governments and carmakers to promote them in cities. small towns and cities, with the help of subsidies. The government also pledged to develop a network of charging facilities covering China’s rural areas as part of a larger economic campaign to create “new-style infrastructure”.
The Ministry of Industry and Information Technology will ease the restrictions and provide other supportive policies in an effort to support sick manufacturers of pandemic-hit electric vehicles.
Manufacturer of electric cars supported by Alibaba Ltd, supported by XPeng Inc. said Friday it has filed to list its shares in New York, following the debut of rival Li Auto Inc., backed by Tencent Holdings Ltd., on the recent Nasdaq stock exchange. months.
Raffaele Huang contributed to this article.
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