Shares in this article
Beijing / Shanghai (Reuters) – The Chinese car market is getting better and faster after the Corona crisis.
According to the Chinese manufacturers’ association CAAM, sales climbed by 16.4 percent to 2.1 million vehicles in July. This means that sales on the world’s largest car market rose for the fourth month in a row. Since the beginning of the year, sales have been almost 13 percent below the level of the previous year. The association expects that manufacturers will be able to limit the gap to the previous year to around ten percent. The prerequisite is that there is no second wave of Covid infection. Then a decrease of 20 percent is also possible.
As a promising sign, the CAAM assessed the fact that sales of environmentally friendly vehicles ended their months-long decline and grew by 19.3 percent to 98,000 units in July. The sales growth shows that manufacturers and customers are getting used to the “new normal” after the government cut subsidies last year. The manufacturers’ association is forecasting a decline in sales of new energy vehicles (NEV), which includes battery-powered cars, plug-in hybrids and hydrogen-powered vehicles in China, by 11 percent to 1.1 million this year.