China’s passenger car sales in April dropped 18% YoY

Shanghai Metals Market found passenger car sales in China decreased year-on-year in April for the 11^th consecutive month. Trade tensions and economic slowdown were the two probable reasons that kept the consumption down.

Retail sales of sedans, sport utility vehicles, minivans, and multi-purpose vehicles dropped 16.6 per cent on the year to 1.54 million units in April, updated China Passenger Car Association (CPCA) on Friday, May 10. In March, the drop was by 12 per cent and in February 18.5 per cent YoY.

Sales excluding minivans had logged in at 1.51 million units in April 2019, down 13.8 per cent from March and 16.9 per cent from April 2018.

Retail sales of passenger cars also displayed a downward trend by 18 per cent year on year, coming in at 44,275 units.

Secretary General of CPCA Cui Dongshu, however, said: "There's little hope for us to see positive signs for the auto market in the first half."

Separately, domestic wholesales of new energy vehicles posted growth by 28.4 per cent from the same period last year to 91,000 units, but remained down 17 per cent from the previous month, according to CPCA data. 

According to another update from SMM, Shanghai has planned to introduce the national VI B car emissions standards from July 1. This is one of the world’s toughest standards for light-duty vehicles weighing less than 3,500 kg.

As per the new emission standard, the carbon monoxide emission and oxynitride emission of cars should not exceed 500 mg/km and 35 mg/km, respectively.

This will expectedly cut China’s annual emissions of nitrogen oxides by 2,000 tonnes and volatile organic compounds by 1,000 tonnes.