uploads///

Analyzing China’s Vehicle Sales in December 2017

By

Jan. 12 2018, Published 12:00 p.m. ET

China’s December 2017 vehicle sales

According to the data provided by the China Association of Automobile Manufacturers, Chinese vehicle sales (IYK) stood at ~3.1 million units in December 2017. This number reflected a minor rise of ~0.1% compared to Chinese auto sales in December 2016. 

In November 2017, Chinese vehicle sales also rose 0.7% YoY (year-over-year) to 3.0 units. With this, November was the seventh month in a row in which Chinese vehicle sales witnessed positive YoY growth.

According to Reuters, new energy vehicle sales in China jumped 56.8% in December 2017, primarily due to the Chinese government’s sales tax waiver on such vehicles.

Article continues below advertisement

Comparing with US auto sales

Unlike China, total US auto sales in December 2017 fell ~5.2% YoY to 1.6 million units, according to the data compiled by Autodata. In 2017, China’s total vehicle sales increased 3.0% YoY to 28.9 million units, whereas US auto sales fell ~1.8% YoY to 17.2 million vehicles last year.

The sales of US of trucks and utility vehicles have risen in the last three years compared to the sales of small cars in the country. In 2017, US truck sales rose 4.3%, and car sales plunged 10.9%.

Note that China is the largest single auto market in the world. In the last few years, key auto industry players such as Ford Motor Company (F), Toyota Motor (TM), General Motors (GM), and Fiat Chrysler Automobiles (FCAU) have increased their focus on China. Existing strength in the Chinese vehicle market and its immense future growth potential could be the main reasons for these global automakers’ betting high in China.

Series preview

In this series, we’ll explore the December 2017 Chinese sales figures of the two largest US automakers: GM and Ford. We’ll understand what these sales figures could mean for these auto companies’ future growth. In the next article, we’ll start by looking at Ford’s China sales data for December 2017.

Advertisement

More From Market Realist