Vehicle sales up again in June, but annual outlook still bleak
Country’s leading auto association expects yearly tallies to fall 10 to 20 percent from 2019
Carmakers are continuing to regain lost ground in China as the industry notched its third consecutive month of growth in June in the world’s largest auto market, but the China Association of Automobile Manufacturers expected total sales in the year could fall by 10 percent to 20 percent from 2019.
A record 2.30 million vehicles were sold last month, soaring 11.6 percent year-on-year, according to statistics the China Association of Automobile Manufacturers released Friday.
Total vehicle sales in the first half of the year reached 10.26 million, a 16.9 percent fall year-on-year.
Chen Shihua, deputy secretarygeneral of the association, said “The better-than-expected growth is thanks to pent-up demand for passenger vehicles in the first quarter, and the record sales in the commercial vehicle sector.”
Of the sales in June, 1.76 million were passenger cars, up merely 1.8 percent from the same month last year. The mainstay of the automotive industry, passenger vehicle sales were severely reduced earlier this year.
Though meager, the growth in June continued the momentum first spotted in May this year, a sign that the passenger vehicle segment is recovering from the pandemic and consumers have restored financial confidence.
Commercial vehicles including buses and trucks registered record sales last month. A total of 536,000 were sold, up 63.1 percent year-onyear. In the first half of the year, sales totaled 2.38 million, up 8.6 percent from the same period last year.
However, the association urged carmakers not to be overoptimistic. It said the stimuli plans that many cities have rolled out are an important contributing factor in the overall market’s growth. When the stimuli disappear, sales may shrink.
In fact, commercial vehicles are the only automotive segment that have managed to secure positive growth from January through June in spite of the pandemic that hurt China’s auto market badly early this year and still rages in other parts of the world.
In comparison, passenger car sales in the first half slumped 22.4 percent year-on-year. The new energy vehicle segment has not seen any monthly growth so far this year.
Sales of electric cars and plug-in hybrids totaled just 104,000 in June, down 33.1 percent from the same month in 2019, and deliveries in the first half totaled 393,000, a 37.4 percent fall.
Some companies, though, are outperforming the market. BMW said
The better-thanexpected growth is thanks to pent-up demand for passenger vehicles in the first quarter, and the record sales in the commercial vehicle sector.”
Chen Shihua, deputy secretarygeneral of the China Association of Automobile Manufacturers
in the first half of 2020, sales of electrified models rose almost 50 percent compared to the same period last year.
The company said 10,650 plug-in hybrid 5 Series cars were sold in the past six months, giving the German automaker a lead position in the segment.
BMW said it will speed up electrification and digitalization, introducing new models such as the allnew iX3, which is the first Chinamade electric BMW model, in the second half of the year.
Overall, the company delivered 212,617 vehicles in the second quarter in China, its largest market.
The figure represented a 17.1 percent year-on-year growth. Its sales in the first half of the year totaled 329,069 BMW and MINI-branded vehicles.
“The comprehensive recovery shows that the measures we have taken since March are indeed bearing fruit,” said Jochen Goller, president and CEO of BMW Group Region China, in a statement.
Geely Auto was the bestselling Chinese carmaker. It sold 110,129 vehicles in June, up 21 percent yearon-year. Deliveries in the first half of 2020 totaled 530,446 vehicles, ranking first among Chinese carmakers and accounting for 38 percent of its goal of delivering 1.41 million cars this year.
An Conghui, Geely’s president and CEO, said the company will make every effort to move forward and realize its annual sales goal.
Geely has registered positive growth for three months since April. Its market share by the end of May grew to 6.88 percent in China, up 0.53 percentage points from the same period in 2019.
Volkswagen AG remains the most popular auto group in China despite a fall in its sales.
Its joint venture FAW-Volkswagen sold 874,174 vehicles under its Audi, Volkswagen and Jetta brands, down 9.2 percent year-on-year. But it still ranked as the bestselling carmaker in the country.
Another joint venture SAIC Volkswagen sold 577,385 vehicles in the first half of the year, a 37.3 percent slump from the same period last year.
The company is expected to launch Volkswagen’s first Chinamade model on its electric car-only platform later this year.