China’s auto sales are expected to rise by 8pc in September from the prior year, according to the China Passenger Car Association. Retail sales are forecast at 1.915mn in September.
China’s Ministry of Commerce is promoting sales in the traditional peak season of the Golden Nine and Silver Ten which is expected to boost steady growth of sales in September. Vendors have reported an average market discount rate of around 16pc in September, which is marginally up from August as vendors are under pressure to achieve their annual sales targets. Also, manufacturers increased their retail sales target by 6pc from the prior year in August, according to local media.
The association reported actual passenger car sales in August at 1.7mn, up 9pc from the prior year, which is an 8-month high. Stimulus policies and promotional subsidies offered by local authorities supported the recovery of consumer demand for the auto sector. More than 50pc of China’s provinces are offering stimulus policy for the auto sector with some cities raising purchase restriction quotas.
Auto shows, series of new launches and aggressively marketing by automakers and dealers, positively impacted sales in August. Overall promotion policy strength increased marginally from July to August, which has helped China’s auto sales.