
With economic growth saturating in China, demand for light vehicles has dipped to a considerable extent across China cities. Despite the discounts and offers during Chinese New Year holiday, showroom traffics dropped in this period.
A report from China Association of Automobile Manufacturers says China’s new light-vehicle deliveries dropped in January for the seventh consecutive month. The deliveries dropped 18 per cent to 2.02 million cars. Light trucks registered the steepest monthly decline since July 2018. The sales slump was registered across all major segments.
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Multipurpose vehicle demand dropped 27 per cent to around 129,600 while minibus deliveries tumbled 26 per cent to some 26,400 units. Sales of crossovers and SUVs fell 19 per cent to roughly 878,900. Sedan deliveries dropped 15 per cent to about 986,200. Deliveries of new commercial vehicles including trucks and buses also dipped 2.2 per cent to about 346,000.
The total new-vehicle sales in China dropped 16 per cent YoY to 2.37 million last month.
However, sales of EVs and plug-in hybrids surged in January as automakers boosted EV outputs with the government enacting a quota system as part of a carbon credit program at the beginning of 2019. Delivery of EVs and plug-in hybrids registered a jump of 138 per cent YoY to about 96,000 units. Demand for EVs jumped roughly 180 per cent to 75,000. Delivery of plug-in hybrid vehicles rose 55 per cent to 21,000 units.
In 2018, total new-vehicle sales in China dipped 2.8 per cent to 28.1 million for the first time since 1990. Over the year, new light-vehicle sales dropped 4.1 per cent to 23.7 million while new commercial-vehicle deliveries rose 5.1 per cent to 4.4 million.
Volkswagen Group reported 2.9 per cent drop in China sales to 387,300 for the sixth consecutive month in January and blamed China’s weakening light-vehicle market for the prolonged slide. Sales also continued to drop at General Motors’ two joint ventures in China, SAIC General Motors Corp. and SAIC-GM-Wuling Automobile Co in January.
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