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Auto sales up in Sept, but market outlook still dim

By Yu Xiaoming | chinadaily.com.cn | Updated: 2019-10-15 13:27
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A WM EX5 catches visitors' attention at a new energy car expo in Hangzhou, Zhejiang province. [Photo by Lian Guoqing/for China Daily]

China's auto sales and output both surpassed 2.2 million vehicles last month. However, unfavorable factors have still dimmed the outlook for market demand, industry data showed.

The country saw a total of 2.27 million vehicles sold in September, up 16 percent month-on-month, while production rose 11 percent to 2.21 million units, data from the China Association of Automobile Manufacturers (CAAM) showed.

However, on a yearly basis, auto sales and production registered a 5.2 percent and 6.2 percent decline respectively. So far, China's auto sales and production have fallen for the 15th consecutive month.

"Golden September and silver October" is a Chinese term used to describe the peak sales season for cars. "September data showed that sales and production of commercial vehicles saw slight year-on-year growth. However, for passenger vehicles, there is no obvious change in the overall downward trend," said Chen Shihua, assistant to the secretary-general of the CAAM.

In September, sales and production of passenger vehicles reached 1.93 million and 1.87 million units respectively, up 16.8 percent and 10.1 percent from the previous month, and down 6.3 percent and 7.9 percent from a year earlier.

Last month, sales and output of commercial vehicles amounted to 340,000 and 345,000 units respectively, up 11.6 percent and 15.8 percent on a monthly basis, and up 1.9 percent and 4 percent on a yearly basis.

During the first nine months, total car sales and output declined by 10.3 percent and 11.4 percent year-on-year to 18.37 million and 18.15 million units, respectively, the association said. Meanwhile, the country saw a total of 872,000 new energy vehicles sold in the first nine months, up 20.8 percent year-on-year, while production surged 20.9 percent to 888,000 units.

Currently domestic auto consumption still lacks confidence, the CAAM said. Meanwhile, some regions implemented the State VI emission standards ahead of schedule, which weighed on the market and led to an overall weak performance.

However, during the third quarter of this year, driven by a string of policies to stabilize employment, finance, foreign trade, investment and market expectations, the drop in auto sales and production is narrowing. With the arrival of silver October, domestic auto sales and production is expected to see a rebound, the CAAM added.

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