Automobile consumption continues to rise in China with many automakers reporting a double-digit increase in sales in November. Policy support in form of increased purchase quota by city authorities and discounts offered by automakers boosted sales. Major automakers Great Wall Motors, Changan, GAC, Geely and Shuguangreported sales growth for the Jan-Nov period as well.
Great Wall Motors sold 145,200 cars in November, up by 26.12pc from the prior year. Cumulative sales from Jan-Nov rose to 961,500 vehicles, an increase of 0.75pc from the prior period. The company achieved its adjusted sales target of 1.02mn ahead of schedule. Annual sales are forecast to exceed the original target of 1.11mn for the year.
Chongqing Changan Automobile (Changan) vehicle sales rose by 24.5pc in November to 219,526 units in the prior year.
Geely Automobile’s car sales rose by 5pc to 150,500 units, of which 6,829 were new energy and electrified vehicles.
SAIC Motor’s sales increased by 10.7pc to 643,900 units in November from the prior year, which is the company’s highest growth rate since June 2018.
Shuguang Automotive or Sugon’s sold 949 cars in November, which is 111.36pc growth from the prior year. Cumulative sales from Jan-Nov were 6,823, up by 5.76pc from the prior period.
GAC Group’s car sales rose by 11.38pc to 217,700 vehicles in November from the prior year, while cumulative sales fell by 2.21pc to 1,834,700 vehicles.
Dongfeng Nissan sold 126,600 units in November, up by 10.3pc from the prior year. Cumulative sales from Jan-Nov exceeded 1mn to reach the full-year target ahead of schedule.
BYD’s car sales rose by 29.6pc to 52,800 units in November.
According to China Automobile Dealers Association, peak season sales momentum has continued into November. Sales of luxury cars have slowed, while joint venture brands and domestic brand sales are expected to grow in December amid promotional activities to achieve annual sales targets.
New energy vehicle sales
China’s new energy vehicle sales continue to surge. BYD sold 25,553 new energy cars in November, up 139.4pc from the prior year. SAIC sold more than 57,000 new energy vehicles, up by 224.6pc from the prior year. While retail sales of Wuling Hongguang Mini exceeded 33,000 units with the biggest single-day record sales of more than 2,000 in China. From Jan-Nov, SAIC’s sales of new energy vehicles rose by 63.2pc to 250,000 from the prior year.
To expand automobile consumption in China, local authorities are optimizing purchase restrictions and increasing license plate quotas. Citizens are encouraged to dispose of vehicles below National III emission standards and buy new cars through state subsidies. Provinces and cities such as Guangdong, Shanghai and Beijing are promoting auto consumption.
China is also formulating an action plan to promote cars in the rural region and working towards electrification of public sector vehicles.
Provincial authorities are doling out subsidies for new energy vehicles. China’s Ministry of Finance has allocated CNY37.585bn ($5.74bn) for new energy vehicle subsidies in 2021, which is 3.34 times the total subsidy for 2020.