August 2018 China vehicle sales
According to the data provided by the China Association of Automobile Manufacturers, Chinese market vehicle sales (IYK) stood at ~2.10 million vehicle units in August 2018, a ~3.8% drop from August 2017. August was the second consecutive month and the third month in 2018 so far that China’s vehicle sales dropped on a YoY (year-over-year) basis. Sales fell 11.1% in February and by 4.0% YoY in July.
The data compiled by MarkLines suggests that China sales of passenger cars fell 4.6% in August this year, while commercial vehicles sales rose slightly by 1.1% YoY. Sharp declines in SUVs (sports utility vehicles) and MPV (multi-purpose vehicle) sales were the key reasons why China’s total sales fell last month. China’s SUV and MPV sales fell 4.7% and 13.6% YoY, respectively, in August.
In August, China’s new-energy vehicle sales jumped up by 49.5% in August to ~ 101,000 units. This consistent strength in new-energy vehicle sales is primarily driven by the Chinese government’s tax rebates on such vehicles.
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 (F), Toyota (TM), General Motors (GM), and Fiat Chrysler Automobiles (FCAU) have increased their focus on China. Future growth potential of the Chinese vehicle market is the main reason why these auto giants are betting high in China.
In this series, we’ll explore the August 2018 Chinese sales figures of automakers such as Ford, Toyota, and Honda. We’ll look at what these sales figures could mean for these auto companies’ future growth. In the next part, we’ll begin by comparing the trend in China and US vehicle sales.