Chinese automobile sales expected to exceed 25m units in 201
Chinese automobile sales expected to exceed 25m units in 201。om2203">
The Chinese automobile market is set to make another breakthrough this year, as total sales are expected to break the 25 million mark. According to a report appearing in the Beijing Times today, the China Association of Automobile Manufacturers predicts sales this year to grow 7 percent, with total sales volume anticipated to be 25.13 million units.
Several more Chinese cities may begin implementing policies limiting new automobile registrations similar to those in effect in Shanghai, Beijing and Guangzhou, the Securities Daily reported today, citing recent statements made by the China Association of Automobile Manufacturers.
The CAAM expects that the major factors behind this year’s sales growth are China’s increasing GDP, lack of policies restricting new automobile restrictions. The CAAM believes that the Chinese automobile market is reaching a new stage of maturity. The passenger automobile segment has continued to grow steadily, with demand remaining high. In addition to consumers in first- and second-tier cities buying more expensive vehicles, buying potential in third- and fourth-tier cities are beginning to be unleashed.
According to the CAAM, Tianjin, Shenzhen, Hangzhou, Chengdu, Shijiazhuang, Chongqing, Qingdao and Wuhan are all considering implementing such policies. If these cities do indeed apply these policies, total automobile sales would decrease approximately 25 percent, or 400,000 vehicles.
Furthermore, the new energy market in China is growing in importance, with the government unveiling a series of policies aimed at promoting new energy vehicle usage. At the same time, policies to get rid of vehicles’ whose emissions exceed national standards continue to be implemented, further encouraging consumers to consider new energy vehicle purchases.
As a reference, following the introduction of the registration plate lottery system in Beijing, new car sales in the city fell by 520,000 units.
The SUV and minivan segments are expected to be very hot in 2015, with their respective sales volumes for 2015 expected to be 5.1 million units and 2.58 million units.
The CAAM does not advocate the introduction of policies targeting new automobile sales for various reasons. "Despite the fact that the GDP grew only seven percent over the first half of the year, production and sales volumes for the automotive industry both increased over ten percent, greatly aiding... the national economy," CAAM Executive Vice Chairman and Secretary General Dong Yang pointed out. Mr. Dong cautioned that if the above eight cities all implement policies limiting new purchases, China's total automobile sales will fall two percent, which would noticeably affect both industry output value and the economy as a whole.
Aside from the economic effects, the CAAM believes that automobile purchase restriction policies have not clearly demonstrated their effectiveness in tackling the issues of traffic congestion and air pollution. They also harm the sales performances of domestic own brand manufacturers which primarily focus on selling economy-level vehicles.
10.75 million automobiles were manufactured and 10.78 million sold in China over the first half of the year. The two figures respectively represent year-on-year growth of 12.83 percent and 12.34 percent.