China’s vehicle sales in July
According to data provided by the China Association of Automobile Manufacturers, China’s vehicle sales were at ~1.89 million vehicle units in July. The number reflected an ~4.0% drop from China’s auto sales in July 2017. July was the second month in 2018 that China’s vehicle sales fell on a YoY (year-over-year) basis. China’s vehicle sales fell 11.1% YoY in February due to the Chinese New Year holiday. In June, China’s auto sales increased 4.8% YoY to 2.27 million units.
The data compiled by MarkLines suggested that China’s passenger car sales fell 5.3% in July, while commercial vehicle sales rose 3.3% YoY. A sharp decline in SUV (sports utility vehicle) and MPV (multi-purpose vehicle) sales was the key reason why China’s total sales fell last month. Notably, China’s SUV and MPV sales fell 8.2% and 21.9% YoY, respectively, in July.
New-energy vehicle sales in China increased 47.7% in July to ~84,000 units. The continued strength in new-energy vehicle sales was primarily driven by the Chinese government’s rebates on the vehicles.
In 2017, China was the world’s top automobile market (IYK) by sales volume. In the last few years, key auto industry players like Ford (F), Toyota (TM), General Motors (GM), and Fiat Chrysler (FCAU) have focused more on China. The future growth potential of China’s vehicle market is the main reason why these auto giants are betting high on China.
In this series, we’ll discuss China’s sales figures for automakers like Ford, Toyota, and Honda in July. We’ll see what the sales figures could mean for these auto companies’ future growth. We’ll also discuss how the trade war and potential auto tariffs could impact the auto industry.
Next, we’ll compare the trend in China and US vehicle sales.