Car Market Performing Better than Expected with High Growth for the Month of May
The Chinese car market is performing better than the country’s leading auto organization has expected. During the month of May which saw the highest monthly growth year on year sold around 2.09 million vehicles a 9.8 percent increase compared to the same period last year. the sales has pushed the number of cars that were sold through the first five months to 10.75 million units this year showing an increase of 7 percent.
The performance has exceed the expectations of CAAM, said Chen Shihua the vice secretary general of the association that has an estimated growth rate to reach 6 percent this year, and so far no plans of revisions on the estimates are given. Chen said that the performance for the month of May was due to the sales of passenger cars with nearly 1.8 million units sold that month an increase of 11.3 percent year on year. and from January to May 9.25 million units were sold a 7.8 percent growth year on year high than the overall rate of 7 percent. Vehicles with engines smaller than 1.6 liters are the driving force of the sales and in May around 1.28 units of said vehicles were sold a 71.6 percent of the total passenger cars sold for that month due to the favorable policy that China released for small engine cars.
The policy which was released in September was expected to expire by th end of the year with half the purchase tax on the said car or in most cases around 10 percent of the vehicle’s sticker price. In the month of May around 717,000 Chinese brand cars were sold or an increase of 13 percent compared to the same period last year. and even with the boom, Chinese made SUVs are losing ground to international brands. Sedan sales dropped 8.2 percent and sales of multi purpose vehicles when up by 32 percent. Three out out of the top ten best selling SUVs from Chinese automakers were sold, due to the increasingly fierce competition with many international brands that introduced new models ans cut down prices.
New energy vehicles are keeping up the momentum and in May around 35,000 units were sold, a surge of 128 percent year on year with pure electric vehicles accounting for 76 percent of vehicles sold. And for the first five months of 2016, 126,000 new energy vehicles were sold or 134 percent up compared to the same period.