China’s auto market is rebounding, with sales in June expected to grow 34.4 percent from May, as vehicle production has returned to normal in the country and the government’s package of measures have started to take effect, according to carmakers and analysts.
Vehicle sales last month were estimated to reach 2.45 million units, said the China Association of Automobile Manufacturers, based on preliminary figures from major carmakers across the country.
The figures would mark a 34.4 percent rise from May and a 20.9 percent increase year-on-year. They would bring sales in the first half of the year to 12 million, down 7.1 percent from the same period of 2021.
The fall was 12.2 percent year-on-year from January to May, according to statistics from the CAAM.
Retail sales of passenger vehicles, which account for the absolute majority of vehicle sales, could hit 1.92 million in June, said the China Passenger Car Association.
That would be up 22 percent year-on-year and up 42 percent over May. Cui Dongshu, secretary-general of the CPCA, attributed the robust performance to the country’s raft of pro-consumption measures.
Among other things, the State Council halved car purchase taxes in June for a majority of gasoline models available in the market. The favorable measure will be valid by the end of this year.
Around 1.09 million cars received China’s car purchase tax cut during the first month of the policy’s implementation, according to the State Taxation Administration.
The tax cut policy had saved about 7.1 billion yuan ($1.06 billion) for car buyers, data from the State Taxation Administration showed.
According to the State Council, vehicle purchase tax cuts nationwide could total 60 billion yuan by the end of this year. Ping An Securities said the figure will account for 17 percent of vehicle purchase taxes levied in 2021.
Local authorities in scores of cities across the country have rolled out their packages as well, offering vouchers worth up to thousands of yuan.
Post time: Jul-12-2022