In July, China posted surging auto sales as the country bounced back from the lows during the most intensive period of coronavirus lockdown.
According to the China Association of Automobile Manufacturers (CAAM), on a yearly basis, auto sales rose by 16.4% to 2.11 million units and posted the fourth month in a row of gains. However, for the year to date, it still down by 12.7% at 12.37 million vehicles.
Significantly affecting the reading was the sales of new energy vehicles (NEVs), which a 19.3% climb to 98,000 units, ending 12 consecutive months of decline.
A sharper soar was posted by the sales of trucks and other commercial vehicles by 59.4% due to the increase of government investment in infrastructure, along with stricter emission rules this year.
Meanwhile, passenger vehicles’ sales jumped by 8.5%.
Last month, Great Wall Motor Co. Ltd., Geely Automobile Holdings Ltd., and Toyota Motor Corp. are among the automakers reporting sales growth.
Xu Haidong, a senior CAAM official, commented that the growths signed that consumers have adjusted to the new normal after the government cut subsidies in 2019.
Looking ahead, CAAM estimated auto sales to slump roughly 10% in 2020. However, if the second wave of pandemic goes on, the drop could be as deep as 20%.
Sales for NEV is expected to go down by 11% year-on-year to 1.1 million units.
