China's Domestic Vehicle Market Creates New Sales in August

After experiencing the low sales in July, the Chinese auto market began to rebound strongly. Last weekend, China Automotive Technology and Research Center released the latest statistics show that domestic auto sales completed 1.125 million vehicles, an increase of 15.09%, an increase of 55.72%.

It is worth mentioning that the increase in auto sales in August caused the inventory cycle to be shortened from 58 days in July to 57 days.

Monthly sales increased by more than 50% year-on-year

Data show that the national auto production in August completed 1,204,200 units, a decrease of 2.74% from the previous period and a year-on-year increase of 10.15%. Sales volume reached 1,125,500 units, a year-on-year increase of 15.09% and a year-on-year increase of 55.72%. From January to August, the cumulative production and sales volume of automobiles were 109.915 million and 945.69 million, respectively, an increase of 35.45% and 31.53% year-on-year respectively, and the overall development situation was good.

According to Zhao Hang, director of China National Automotive Research Institute, the output of automobiles in August was “lower and higher”, and the output of the four natural weeks was 21.93 million units, 237,600 units, 307,400 units, and 329,400 units respectively. In the first half of the year, the company moderately adjusted its output so as to effectively control its inventory. In the second half of the year, the company actively arranged its production and prepared for the peak sales of the “Jin 9 Silver 10” automobile just arrived. Judging from the auto inventory cycle, the auto inventory cycle in August was 57 days, which was a decrease of 1 day from July, and the monthly growth momentum was curbed, with the inventory cycle of passenger cars reduced from 60 days to 58 days.

When the Yangcheng Evening News reporter recently visited Huangpu Road, Huangshi Road, Baiyun Avenue and other automobile sales sites, the car dealers all expressed that: “Since the end of August, passenger traffic has increased significantly, inventory pressure has eased, and the number of orders has increased a lot. ”

Passenger car growth hit a record high this year

Statistics also show that in August, the production capacity of passenger cars was 929,600 units, a decrease of 2.06% from the previous period and a year-on-year increase of 12.60%; sales of 977,300 units, a year-on-year increase of 18.85% and a year-on-year increase of 59.26%. The year-on-year increase in sales volume was higher than that in July. 43.83 percentage points, passenger car inventory decreased.

In the subdivision of passenger car models, the output of all other models of the passenger cars in the sub-segment decreased except for the basic level of car sales, which saw year-on-year growth in all levels except for cross-over passenger cars; in the sales of all subdivided models, all models were sold. Both growth rate and year-on-year growth were achieved.

According to statistics, in August, the number of cars produced was 666,400, a year-on-year increase of 1.65%, an increase of 8.26% year-on-year, and sales of 691,200 cars were up 20.06% month-on-month and an increase of 56.78% year-on-year. SUV production was 94,300 units, a decrease of 3.72% from the previous period and a year-on-year increase of 70.43%; sales of the company were 87.5 thousand units, a year-on-year increase of 13.75% and a year-on-year increase of 117.13%. MPV produced a total of 38,500 vehicles in August, a decrease of 0.02% from the previous period and an increase of 64.41% year-on-year; sales of 35,500 vehicles were up 12.74% month on month and an increase of 116.81% year on year.

Energy-saving car sales increase by 32%

The data also showed that in August, sales of passenger vehicles with 1.6L and below displacement amounted to 652,000 vehicles, an increase of 20.3% from the previous period and a year-on-year increase of 56.3%, accounting for 66.7% of the overall market for passenger cars, which represented an increase of 0.76 percentage points in July.

The influence of the "energy-saving auto subsidy" policy that car companies and dealers believe is the best in this year's auto market is also growing. According to the latest data, among the sales of passenger vehicles with 1.6L and below, the 132 energy-saving vehicles in the “Energy-saving Automobile Promotion Catalog” sold a total of 126,600 vehicles in August, an increase of 32% from the previous month and accounted for 1.6L and below displacement. 19.9% ​​of the sales of passenger vehicles accounted for 13.3% of the total passenger vehicle sales. This helped the August passenger car market rebound, and at the same time, factors such as energy-saving subsidies and inventory pressure prompted auto manufacturers. Dealers have stepped up marketing efforts for passenger cars with displacements of 1.6L and below, spurred consumers’ desire to purchase affordable cars, and promoted the performance of the market for passenger cars with displacements of 1.6L and below in August.

Zhao Hang, director of China National Automobile Research Institute, said that the introduction of energy-saving car subsidy policies not only stimulated the popularity of energy-saving models, but also prompted some other models to reduce prices and promote the overall market for passenger cars. With the successive release of energy-saving automotive product catalogs and the further enhancement of policy-driven actions, the proportion of energy-saving automotive products in passenger vehicles will also increase rapidly.

September auto market tends to stabilize

What will be the trend of the auto market for the September just arrived? As the automobile market enters the traditional sales season “Golden 9 Silver 10”, the car dealers are ready for full preparation. Many car dealers in Guangzhou said in an interview with reporters that the auto market in September is expected to reproduce a new round of strong growth. However, there are also individual dealers who said that the price war still does not push the market's expected results.

Zhao Hang was optimistic when interviewed by reporters. He said that at present, the auto manufacturers push new products, a variety of new cars are continuously listed, and the space for consumer choices is expanding; the price reduction and promotion of distributors are continuously increasing, and the preferential rate is large. The scope is wide, stimulating consumer enthusiasm for car purchase; the effect of energy-saving vehicle subsidy policy is obvious, and the promotion catalogue is announced one after another. Coupled with the continuation of a number of original favorable policies, it is expected that the passenger vehicle market will still maintain its good performance in September. For commercial vehicles, accelerated construction of affordable housing, urbanization, and post-disaster reconstruction are conducive to the development of the commercial vehicle market. It is expected that the commercial vehicle market will increase steadily in September.

A securities auto analyst also said that the early entry of the auto market into the busy season is very beneficial to the improvement of the auto company's performance. The performance in the third quarter tends to be stable, and the profit in the fourth quarter will have a larger increase compared to the same period last year.