By the Numbers: China’s Feb. Car Sales Up 46.40%
March 11, 2010 by Colin Bird
Since China is, and likely will remain, the largest car market on the planet – “By the Numbers” will now extend to our Sino neighbor.
In February, sales of cars, commercial vehicles, SUVs, trucks and buses topped 1.21 million in China, a 46.40% increase from last year.
Excluding commercial vehicles (buses and commercial grade trucks), China sold 942,900 vehicles to its citizens – that’s up 55% from last February. Passenger car sales are about 17% higher in China when compared to USA’s 780,265 units sold in the same month.
According to Waverly Advisors, while China’s sales are dramatically less than January’s (chart above) it’s still considered to be profound growth due to the nature of February in Chinese society. The Lunar New Year’s is the most important holiday for the Chinese. The two week long holiday reduce sales prospects by as much as 30-40% according to Waverly, and yet sales were up nearly 50% from last New Year’s.
The top three passenger car sellers in China remained Shanghai Volkswagen, Shanghai General Motors, and FAW-VW, according to morningpost.com.
For GM, sales of the new Chevy Cruze (13,515) and Chevy Spark (10,405) have been better than expected. Ford moved 4,857 of its new Fiesta and 59,362 of the vehicle since it was launched in the country. Chrysler sold a measly 1,234 vehicle in the country, but, then again, Chrysler only sold 10,405 vehicles outside North America.
While there were big winners in China, many automakers also suffered. Beijing Hyundai, Changan Ford Mazda, and Chery, suffered a 40%-plus month-on-month drop in sales volume. Dongfeng Kia and Changan Suzuki also fell by 25%.
Toyota’s sales fell to 45,400 units in February from 72,000 in January, according to the Associated Press. Toyota has announced a 0% financing scheme similar to the one announced in the US. Toyota is also offering gas coupons worth $13 USD and $140 USD discounts on car insurance to win over buyers. Toyota is suffering from recall hangover in China, the same as in the US.
According to Waverly, Beijing has hinted that it will continue to support the auto industry through distortionary market incentives. China’s Ministry of Industry continues to place pressure on the market to create 500,000 green vehicles by 2013.
Source: Associated Press
Graph Source: Waverly Advisors
