June car sales in major Chinese cities are falling, mainly due to the fading impact of policy support.
Liang Dongmei 22 June 2009
(Caijing.com.cn) China’s auto industry is likely to see an end to the robust growth experienced over the last three consecutive months in June due to the fading impact of government stimulus measures for the sector, industry officials said.
In the first week of June, auto sales declined 16 percent month-on-month, Cui Dongshu, vice secretary-general of the China Passenger Vehicle Association (CPVA) told Caijing, signalling a possible steeper-than-expected decrease for the month.
Su Hui, former general manager of the Beijing Asian Games Village Auto Trading Market, one of the country’s largest car markets, also told Caijing that auto sales are declining this month.
He said that apart from Beijing, June sales in other major cities such as Shanghai and Guangzhou are also falling, mainly due to the fading impact of policy support. The government measures had produced a sudden burst of demand in previous months.
Chinese vehicle sales jumped 34 percent year-on-year in May to 1.12 million units, helped by government tax breaks and subsidies, the semi-official China Association of Automobile Manufacturers said earlier this month. Auto sales in China have topped one million units for three consecutive months since March.
The government earlier this year cut sales tax on cars with engine displacements of 1.6 liters or less, and in March extended subsidies to cover small vehicle and motorcycle purchases in rural areas.
The government subsidizes trade-ins of three-wheeled vehicles and specialized farming trucks from 2,000 to 3,000 yuan. It also provides up to 5,000 yuan towards the purchase of light trucks and mini-buses, and up to 650 yuan for motorcycles.
Still, May sales fell 3.11 percent compared with April, when carmakers sold 1.2 million units.
But CPVA’s Cui is still confident that China’s auto sales in 2009 will grow about 12 percent to 11.4 million units, much higher than the 6.7 percent growth in 2008.
The China Association of Automobile Manufacturers’ vice secretary-general Xiong Chuanlin told Caijing earlier that the association expects the country’s total auto sales to increase 8 percent to 10.2 million units.
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China June Auto Sales Likely to Slide
June car sales in major Chinese cities are falling, mainly due to the fading impact of policy support.
Liang Dongmei
22 June 2009
(Caijing.com.cn) China’s auto industry is likely to see an end to the robust growth experienced over the last three consecutive months in June due to the fading impact of government stimulus measures for the sector, industry officials said.
In the first week of June, auto sales declined 16 percent month-on-month, Cui Dongshu, vice secretary-general of the China Passenger Vehicle Association (CPVA) told Caijing, signalling a possible steeper-than-expected decrease for the month.
Su Hui, former general manager of the Beijing Asian Games Village Auto Trading Market, one of the country’s largest car markets, also told Caijing that auto sales are declining this month.
He said that apart from Beijing, June sales in other major cities such as Shanghai and Guangzhou are also falling, mainly due to the fading impact of policy support. The government measures had produced a sudden burst of demand in previous months.
Chinese vehicle sales jumped 34 percent year-on-year in May to 1.12 million units, helped by government tax breaks and subsidies, the semi-official China Association of Automobile Manufacturers said earlier this month. Auto sales in China have topped one million units for three consecutive months since March.
The government earlier this year cut sales tax on cars with engine displacements of 1.6 liters or less, and in March extended subsidies to cover small vehicle and motorcycle purchases in rural areas.
The government subsidizes trade-ins of three-wheeled vehicles and specialized farming trucks from 2,000 to 3,000 yuan. It also provides up to 5,000 yuan towards the purchase of light trucks and mini-buses, and up to 650 yuan for motorcycles.
Still, May sales fell 3.11 percent compared with April, when carmakers sold 1.2 million units.
But CPVA’s Cui is still confident that China’s auto sales in 2009 will grow about 12 percent to 11.4 million units, much higher than the 6.7 percent growth in 2008.
The China Association of Automobile Manufacturers’ vice secretary-general Xiong Chuanlin told Caijing earlier that the association expects the country’s total auto sales to increase 8 percent to 10.2 million units.
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