Automobile sales in China increased for the fourth consecutive
month in Aug 2013, after months of sluggish growth owing to weak
economic conditions and restrictions imposed by the government on
new vehicles. The total vehicle sales in China witnessed
year-over-year growth of 10.3% in August compared with 9.9% in
July, according to the China Association of Automobile
A total of 1.65 million vehicles were sold in the country
during August, leading to sales of 13.95 million vehicles for the
first eight months of 2013, up 11.8% on a year-over-year basis.
Passenger vehicle (cars, multipurpose and sport-utility vehicles)
sales also increased by 11% year over year to 1.35 million units
in August compared with 10.5% in July. For the first eight months
of the year, passenger vehicle sales rose 13.1% to 11.26 million
Meanwhile, commercial vehicle sales increased 7% year over
year to 0.3 million units in August 2013. As a result, the sale
of commercial vehicles improved 6.78% year over year to 2.69
million vehicles in the first eight months of 2013.
Among the U.S. automakers,
General Motors Company
) sales went up 11.2% to 245,799 vehicles in the month, while
Ford Motor Co.
) sales continued to increase for the fourth consecutive month,
soaring 46% to 71,183 vehicles in August.
Sales of Japanese automakers remained weak as they are still
trying to regain the market share lost due to the political
conflict between Beijing and Tokyo over disputed islands in the
East China Sea. Among them,
Nissan Motor Co. Ltd.
) sales inched up 1% to 86,000 units, while
Toyota Motor Corp.
) sales declined 4.2% to 72,100 vehicles and
Honda Motor Co. Ltd.
) sales dipped 2.5% to 55,533 vehicles.
Meanwhile, sales of Germany's BMW grew 34.6% to 34,166
vehicles in the month.
The steady growth in sales in China was mainly attributable to
economic recovery and lower prices, along with hasty buying due
to the possibility of increased regulations for new vehicle
registration to combat increasing traffic congestion and
pollution in Beijing. Further, a significant portion of the sales
came from smaller cities, which offer unsaturated markets.
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
Nevertheless, the nation has managed to regain its position as
the world's largest automobile market. Vehicle sales in China
surpassed the August auto sales of 1.5 million units in the U.S.
and 0.07 million units in the U.K. The CAAM expects automobile
sales in China to cross the milestone of 20 million units for the
first time this year.
Nissan currently carries a Zacks Rank #1 (Strong Buy), while
General Motors, Ford and Honda Motors carry a Zacks Rank #3
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis
HONDA MOTOR (HMC): Free Stock Analysis Report
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