China’s automobile sales in October are estimated to rise by 11.4pc to 2.544mn vehicles from the prior year, but down by 0.8pc from September. Car sales are expected to rise 7.3pc and commercial vehicle by 27.5pc from the prior year, according to China Automobile Association.
In October, China’s Vehicle Inventory Alert Index (VIA) settled at 54.1pc, down by 8.3 percentage points from the prior year and up 0.1 percentage points from September, as per the China Automobile Dealers Association. September and October are traditional peak sales months for the auto industry in China. In October, government incentives to promote auto sales combined with holiday and autumn festivities boosted sales in October. Also in the fourth quarter, dealers keen to meet their annual sales target, offer discounts to usher sales.
In the Jan-Oct period, auto sales are forecast to drop by 4.8pc to 19.96mn units with passenger vehicle sales down by 10pc and commercial up by 20.6 from the prior year.
China’s heavy trucks sales rose rise by 41pc to 129,000 units, which could be the highest monthly sale this year, according to data from China’s First Commercial Vehicle Network. Sales of heavy vehicles rose by 41pc from the prior year, but fall by 14.3pc compared to the prior month. Cumulative sales from Jan-Oct was 1.365mn units, up by 39pc or 380,000 units higher than the prior year period.
Heavy vehicle sales were boosted by the strict implementation of early phasing out of National III diesel trucks. Also, in many regions, the subsidy window for replacement of older vehicle will end this year. New heavy truck purchases are expected to peak further this quarter.
In September, China auto sales rose by 12.8pc to 2.565 units from the prior year, passenger vehicle rose by 8.0pc while commercial sales increased by 40.3pc, and commercial trucks sales were up 43.8pc.