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Auto sales rebound for second straight month in May

By Li Fusheng | China Daily | Updated: 2020-06-15 10:54
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SAIC Volkswagen presents its Tuguan L SUV at the Guangzhou auto show in 2019. [Photo by Li Fusheng/China Daily]

Industry expected to be unaffected in the long run by pandemic, analyst says

Vehicle sales in May soared 14.5 percent year-on-year in China as customer confidence was boosted by the country's ability to mitigate the coronavirus pandemic, according to the country's leading automotive industry association.

A total of 2.19 million vehicles were sold last month, following sales growth first spotted in April, according to statistics from the China Association of Automobile Manufacturers.

Of them, 1.67 million were passenger vehicles, up 7 percent from the same month last year.

It marked the first rise in the sector almost in a year, evidence that the market is recovering from the pandemic that almost devastated the sector in the past several months and still rages in other parts of the world.

Carmakers are revving up production as well. The 2.19 million vehicles made in May represented an increase of 18.2 percent from the same month last year.

The CAAM said that the 23 carmakers' 204 plants across the country had resumed operations by Thursday.

Chen Shihua, deputy secretary-general of the association, said the rise in May sales is primarily the result of the pent-up demand in recent months.

"Companies are resuming operations and the government is rolling out favorable measures, so customers' confidence has been further boosted," Chen said.

The government's stimuli on new car sales and generous discounts at dealerships were also contributing factors.

Dozens of cities in the country are encouraging car sales with a stimuli of thousands of yuan on certain models, usually those made in those cities.

Statistics from the association show that Japanese and German brands expanded their market share in the month, while companies from France, the United States and China lost ground.

FAW-Volkswagen topped the list of carmakers in China in May. It sold 186,777 vehicles under its Volkswagen, Audi and Jetta brands in May, up 22 percent year-on-year.

GAC Toyota had its best-ever monthly sales in May, with 68,518 sold, up 32 percent year-on-year.

The Japanese carmaker's other joint venture FAW-Toyota delivered over 72,000 vehicles in the same month, up 2 percent.

Mazda's joint venture with Changan sold 14,326 units last month, soaring over 50 percent year-on-year.

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