February 2018 China auto sales
According to the data provided by the China Association of Automobile Manufacturers, Chinese market vehicle sales stood at ~1.7 million vehicle units in February 2018, a steep fall of ~11.1% compared to February 2017.
In January 2018, Chinese auto sales witnessed an increase of 11.6% YoY (year-over-year) to 2.8 million units. February 2018 was the first month in which Chinese light vehicle sales declined after rising for eight months in a row on a YoY basis.
Nonetheless, according to Reuters, new-energy vehicle sales in China jumped 95.2% in February 2018 to ~34,000 units. This continued strength in new-energy vehicle sales was primarily driven by the Chinese government’s sales tax waiver on such vehicles.
Comparing with US auto sales
In February 2018, total US auto sales (IYK) fell ~2.4% YoY to 1.3 million vehicle units according to the data compiled by Autodata.
The US sales of trucks and utility vehicles have risen in the last three years compared to the sales of small cars in the country. In February 2018, US truck sales rose 3.8%, and car sales plunged 12.6% YoY.
In February 2018, the Chinese New Year holiday week took place, which could be one of the reasons Chinese sales were down in the month.
Last year, China’s total vehicle sales rose 3.0% YoY to 28.9 million units, whereas US auto sales fell ~1.8% YoY to 17.2 million units.
In 2017, China was the world’s top automobile market by sales volume. 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. The future growth potential of the Chinese vehicle market could be the main reason why these auto giants are betting high on China.
In this series, we’ll explore the February 2018 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 growths.
In the next article, we’ll begin by looking at Ford’s Chinese sales data for February 2018.