General Motors and its joint ventures sold an August record of 245,799 vehicles in China with sales increasing 11.2% from last year’s previous high for the month. Shanghai GM’s domestic sales increased 10.9% on an annual basis to 122,218 units. SAIC-GM-Wuling’s sales in China rose 12.4% to 119,745 units. Both joint ventures had record August sales. FAW-GM’s domestic sales decreased 18.3% to 3,362 units.
For the first eight months of 2013, sales by GM and its joint ventures in China rose 10.7% on an annual basis to 2,034,771 units, an all-time high for the period. Shanghai GM’s domestic sales grew 15.5% to 978,346 units. SAIC-GM-Wuling had domestic sales growth of 7.0% to 1,017,102 units. Both were sales records. FAW-GM’s domestic sales declined 0.9% to 36,330 units.
The entire China light vehicle market posted a solid start in Q3, with locally‐made light vehicle sales according to the latest data available reaching 1.43 million units in July, up 9.3% from a year earlier. Passenger vehicle sales outperformed the overall light vehicle market, with sales of locally‐made models in July growing by 12.8% on a year ago, to 1.12 million units. This growth rate, according to consultancy LMC, was lower than the year‐to‐date growth rate of 16.0% achieved in the first seven months of this year
Passenger vehicles growth came from the SUV and compact car segments. SUV sales accelerated again in July, with 230,000 locally‐made SUVs delivered, up 43% from a year earlier. The compact car segment, the largest segment in China’s car market totaled 510,000 units in July, rising by 19.4% year‐on‐year, well above average car-segment growth of 12.8% in the month coming from first time buyers inland and replacement buyers in far wealthier coastal areas.
Sales of light commercial vehicles remained poor in July, decreasing by 1.6% on the previous year to 320,000 units. LMC opines that the prospects of China’s light vehicle market for the back half of the year appears brighter than in the previous few months. Positive signs come from industrial output and exports in July. More significantly, the stabilizing of economic development has become a top priority of macro‐economic policies, which LMC expects to benefit current car purchasing sentiment.
However, possible car purchasing limits in some tier‐2 cities are emerging as one of the major risks for China’s light vehicle market going forward. They, however, would become a positive factor for car sales in the short term, as widespread rumors will likely push forward potential future purchases.
