Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Silk Road
Industry

China's passenger car sales warm up, uncertainties remain

May 12, 2020


Abstract : Sales of passenger cars in China continued to warm up in April as pent-up demand unleashed, but foundations for a "V-shape" rebound were yet to solidify due to uncertainties from the COVID-19 impact, industry data showed Monday.

BEIJING, May 11 (Xinhua) -- Sales of passenger cars in China continued to warm up in April as pent-up demand unleashed, but foundations for a "V-shape" rebound were yet to solidify due to uncertainties from the COVID-19 impact, industry data showed Monday.

The retail sales of passenger vehicles amounted to 1.43 million units last month, down 5.6 percent year on year but recovering from the 40-percent drop for March and 79-percent fall in February, according to the China Passenger Car Association (CPCA).

Passenger car sales surged 36.6 percent month on month, reversing the usual seasonal trend and suggesting a relatively quick recovery in demand following further domestic containment of the epidemic.

While the overseas spread of the virus may have affected consumer confidence, pent-up demand combined with consumption-spurring policies have offset the negative impacts, the CPCA noted, adding slumping oil prices in the international market also played a part.

Sales of new energy passenger cars came in at 64,000 units in April, down 30 percent year on year but up 14.8 percent from March.

While the sales data pointed to a "V-shape" recovery trend, the CPCA said foundations for the rebound were not solid as the pace of industry recovery remained to be seen.

Meanwhile, the market expectation of a warming housing market following increasing liquidity injections may affect auto consumption, the CPCA added.

In the first four months, passenger car sales totaled 4.45 million units, down 32.7 percent year on year.

To cushion the short-term impact the coronavirus outbreak has caused on auto sales, a pillar of China's consumption, China has encouraged local authorities and financial institutions to roll out measures to help stimulate the market.

More efforts will be made to increase support for personal auto consumption credit and further release the auto consumption potential by appropriately lowering the down payment ratio and loan interest rate as well as extending the repayment period, according to a circular jointly issued by 11 departments including the National Development and Reform Commission.

Other measures included adjustments made to the implementation of "China VI" vehicle emission standards and favorable tax policies for purchases of new energy vehicles. Enditem

Scan the QR code and push it to your mobile phone

Keyword: passenger car

Reading:

Economic Watch: China's auto market rebounds in April as work resumption quickens

Chinese automaker Geely's car sales rebound in April

German manufacturing sees order books shrink due to coronavirus

BMW to invest 620 mln USD in northeast China

China's auto consumption expected to see positive growth in May

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial