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13 AUGUST 2020 AL CIRCLE

China’s automobile market further recovers from COVID-19 pandemic with sales rising by 16.4% in July 2020

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The automobile market in China saw a further recovery in July, marking the fourth consecutive month of growth for the overall vehicle market since the plunge of 42 per cent in the first quarter of 2020. New vehicle sales in July rose by 16.4 per cent from 1.81 million units during the same period last year to 2.11 million units, according to the data released by the China Association of Automobile Manufacturers (CAAM).

China’s automobile market continues to recover in July with new vehicles sales rising 16.4% Y-o-Y

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In July 2020, the recovery in China’s automobile market was primarily driven by commercial vehicles, with sales rising 59 per cent to 447,000 units. Passenger vehicles sales rose 8.5 per cent to 1.67 million units during the same month.

The new energy vehicles saw the first positive month in July since the government slashed subsidies a year ago. New energy vehicle sales grew by over 19 per cent to 98,000 units, including 79,000 pure electric vehicles (EVS).

But despite the rise in July, the total new energy vehicle sales in the first seven months of the year remained down by almost 33 per cent to 486,000 units, with EV sales plunged by over 34 per cent to 378,000 units.

Along with the recovery in the automobile sector, China government reported that the country’s GDP expanded by 3.2 per cent year-on-year in the second quarter of the year.

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Total vehicle sales in the first seven months of the year are, however, still down by about 13 per cent at 12.37 million units, while vehicle production down by almost 12 per cent at 12.31 million units.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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