Govt policies reviving car sales
CHINA’S auto sales rose 4.4 percent year on year to 2.07 million vehicles in April, the China Association of Automobile Manufacturers said yesterday.
April’s growth indicates a recovery in the market after the government released a series of policies to rev up auto consumption. It follows a 43 percent drop in March and a 79 percent fall in February.
In total, 5.76 million vehicles were sold in the first four months of this year, a decline of 31.1 percent year on year. The decline was attributed to macroeconomic factors and weak consumer confidence amid the COVID-19 pandemic.
The CAAM said that with a series of government policies and continuous efforts against COVID-19, the overall market has gradually recovered.
It said production and business operations of car manufacturers had largely resumed in April and output had returned to a level comparable with the same period last year.
“Auto companies are advised to pay attention to changes in the overseas epidemic situation and make appropriate preparations in advance to reduce risks,” the association said.
The association had forecast
Chinese auto sales were likely to fall more than 10 percent in the first half of this year and 5 percent for the whole year, marking a third consecutive year of contraction.
Last year, overall sales fell 8.2 percent to 25.77 million vehicles.
The CAAM said earlier that China’s auto market is expected to recover significantly in the second quarter, but it would be difficult to achieve the same levels as the same period last year.
In April, sales of passenger cars accounted for about 74 percent of total vehicle sales.
China sold 1.53 million passenger cars in the first four months, down 4.6 percent year on year.
Commercial vehicles took up the remaining 26 percent of sales, with 534,000 units last month.
Also in April, sales of newenergy vehicles declined by 26.5 percent to 72,000. Last month, electric vehicles declined 28.6 percent year-onyear to 51,000 units. Sales of plug-in hybrids dropped 20.7 percent to 20,000.
The country has issued policies to promote sales of automobiles and related products to stabilize the economy. In Shanghai, car buyers are expected to enjoy discounts due to the stimulatory policies.