China Auto Sales Show Gradual Increase
Chinese auto sales are excelling in some areas, while other sectors fall behind.
Sales of passenger vehicles, including SUVs, minivans, MPVs, and cars, rose 5.8% year-on-year to 7.1 million units in the first half, despite a slump in April and May sales. Passenger vehicles also totalled 9.3 million units, a rise of 3.4% year-on-year, according to the China Association of Automobile Manufacturers.
By contrast, commercial vehicle sales dropped 3.7% to 2.2 million units, which analysts speculate could be a result of increasing oil prices.
GM's China president Kevin Wale forecast a modest 5% industry growth in 2011, a significant decrease from the blistering 32% gain in 2010. GM sales are also expected to increase by only 10%, again lower than the 15% gain predicted by the auto giant last November.
Wale cites ownership restrictions, poor commercial vehicle sales and a phasing out of buying incentives as key factors in the slow first half sales.
For other passenger car manufacturers, like Volkswagen, 2011 has been a good year, as the German car maker reported an increase of nearly 13% to 852,800 units in the first half. VW have outperformed the market, with industry sales of light vehicles in China totalling 9.3 million units in the first half, up 3.4% year-on-year.
