Chinese car sales surge for fourth consecutive month in July
Sales of Chinese cars jumped 16 per cent year on year last month in the fourth consecutive month of gains as the world’s biggest auto market kicks back into gear after the coronavirus shutdown.
According to data from the China Association of Automobile Manufacturers (CAAM), sales rose to 2.11m units in July.
However, for the year as a whole sales are still down around 13 per cent at 12.4m models, the data showed.
CAAM has forecast a 10 per cent slump in sales across the whole of 2020, but has warned that a second wave of infections could cause this to double.
There was good news for the many carmakers who have invested heavily in developing electric vehicles for the Chinese market.
Sales of so-called NEVs (new electric vehicles) increased 19 per cent to 98,000 units after a year of decline.
Of these, data showed that Elon Musk’s Tesla sold over 11,000 Chinese-built Model 3 cars in the period.
A CAAM official said that the sales growth showed that consumers and producers were getting used to the “new normal” after Chinese officials cut subsidies last year.
Among those to record sales increases in July were Nissan, which said it saw an 11.6 per cent jump against the previous year.
China’s biggest automaker SAIC also recorded a four per cent increase in sales in the period.
CAAM also pointed carmakers to the 11.6 per cent in inventories during the month, which could bring pressure for dealers to cut prices in the second half of the year to meet targets.