| 7:45 PM EST

Retail Car Sales Jump 8% in China

Wholesales and retail demand remain on revival track
#Geely #Volkswagen #asia

Share

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

China’s new-car market has resumed its post-coronavirus revival with an 8% jump in July.

Passenger vehicle deliveries climbed to 1.63 million last month, according to the China Passenger Car Assn. (CPCA). It was the market’s strongest monthly increase since April 2018.

Sales tanked in February as the pandemic hit in China, but month-to-month volumes have improved, except for a dip in June, since then.

Post-Pandemic Bounce

Over the past four months, retail sales by China’s biggest sellers have surged by 40% for market leader Volkswagen, 70% for Brilliance China and 60% each for General Motors and Geely Automotive, CPCA says.

July’s retail sales total of 1.63 million vehicles compares with factory wholesales to dealers of 1.67 million, the China Assn. of Automobile Manufacturers reports. The relatively small 40,000-unit difference suggests dealers are optimistic about future retail demand and are building inventories carefully.

Surge in EVs, Big Trucks

CAAM says July was a good revival month for hybrids and all-electric models, with factory sales climbing 19% to 98,000 cars. They still have a long way to go, though: Volume for the year to date was down by one-third in spite of July’s strong showing.

The market for commercial vehicles also is booming. CAAM says wholesales leaped 59% to 447,000 units in July. That brought the total for the year to 2.8 million trucks and buses, up 14% on the same period last year.

Outlook

China’s economy remains relatively fragile. The country’s gross domestic product, which shrank by an annualized 6.8% in the first quarter, expanded by a relatively modest 3.2% in April-June.

Economists point out that reviving worries about trade conflict with the U.S. could blunt a speedier recovery. And CAAM now predicts full-year factory sales will fall about 10% this year—or twice that if a second major wave of COVID-19 breaks out.

Related Topics

RELATED CONTENT

  • About the 2019 Toyota RAV4

    Last year Buick sold 219,231 vehicles in the U.S.

  • Buying Cheap Gas

    What happens if that $2.29 a gallon goes up by a couple of bucks a year from now? How are the pickup, SUV and crossover sales going to be then?

  • Insight: The Toyota Product Development System’s Implementation Challenges

    For conducting business in the U.S. market, Toyota has historically had several separate business entities: a sales and distribution company headquartered in California (Toyota Motor Sales, USA); manufacturing operations (Toyota Motor Manufacturing North America); a racing subsidiary (Toyota Racing Development, USA); the Toyota Technical Center for R&D in Ann Arbor; and a design facility in California (Calty Design Research, Inc.). On April 1, 2006, Toyota merged its R&D operations and its manufacturing operations into a single company.