After months of sluggish growth owing to weak economic
conditions and restrictions imposed by the government on new
vehicles, total vehicle sales in China reflected a steady growth
of 11.2% in Jun compared with 9.8% in May, according to the China
Association of Automobile Manufacturers (CAAM).
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A total of 1.8 million vehicles were sold in the country during
the month, leading to sales of 10.8 million vehicles for the
first half of the year, up 12.3% on a year-over-year basis.
Passenger vehicle (cars, multipurpose and sport-utility vehicles)
sales also increased steadily by 9.3% to 1.4 million units in Jun
compared with 9.0% in May. For the first half of the year,
passenger vehicle sales rose 13.8% to 8.7 million units.
The steady growth in sales was mainly attributable to lower
prices, which partially offset the effect of shortage of credit,
weak economy and government restrictions on vehicle registration
due to increasing traffic congestion and pollution in Chinese
Sales of American brands swelled 12.7% to 1.8 million vehicles in
the first half of 2013. Among the U.S. automakers,
) sales went up 10.6% to 236,207 vehicles in the month while
) sales continued to be impressive, soaring 44% to 75,254
vehicles in Jun.
Sales of Japanese automakers recovered from the effect of
political conflict between Beijing and Tokyo over disputed
islands in the East China Sea.
Sales of Japanese brands, including
Toyota Motor Corp.
Honda Motor Co.
Nissan Motor Co.
), grew 16.5% to 2.3 million vehicles in the first half of the
year, as CAAM has revealed. Among them, Toyota sales grew 9% to
76,900 vehicles, Honda sales dipped 5.6% to 61,003 vehicles and
Nissan sales fell 7.7% to 101,400 units.
Chinese automakers suffered due to strong competition from
foreign automakers and their local brands. Sales of Chinese
brands rose only 5.5% to 5.3 million vehicles during the first
half of the year.
Meanwhile, sales of German brands went up 20.6% to 2.9 million
vehicles in the same period. Sales of Germany's BMW grew 6.9% to
184,489 vehicles in the month.
In 2009, China overtook the U.S. as the biggest auto market in
the world by sales volumes when the Beijing government introduced
a stimulus package, including tax incentives for small cars.
However, the incentives were scrapped and the Beijing government
imposed quotas on new car registrations in order to control the
traffic congestions. The scenario is expected to become worse in
the future, as Chinese government has widened the number of
cities where it is curbing vehicle purchases to reduce greenhouse
gases, as China Association of Automobile Manufacturers has
According to Shi Jianhua, deputy secretary general of CAAM, the
Chinese government will include Chengdu, Chongqing, Hangzhou,
Qingdao, Shenzhen, Shijiazhuang, Tianjin and Wuhan cities for
controlling auto sales. Shi believes that the controlling
measures will reduce vehicle deliveries by 400,000 units or 2% of
total vehicle sales in the country.