BEIJING – China’s auto market has grown for the fourth month in a row, thanks to strong stimulus from the government and a strong recovery of demand for commercial vehicles.
The government-backed China Association of Automobile Manufacturers said that in July, sales in China rose 16.4% from a year earlier to 2.11 million vehicles.
Since May, the world’s largest auto market has recorded low double-digit annual sales growth, as Beijing eased restrictions and introduced favorable policies and subsidies to restore economy and boost spending.
CAAM maintains a 10% to 20% drop in sales forecast this year, but warns China̵7;s supply chain and exports could suffer if another wave of coronavirus hits the fall and season. bronze.
Nissan Motor Co. said last week that their sales in China were up 11.6% in July from a year earlier. SAIC Motor Corp., China’s largest automaker by sales, said last week that its July domestic sales were up 4 percent from a year earlier.
CAAM tracks the car wholesale market and warns on Tuesday that car dealers should pay attention to inventories, which rose 11.6% last month. Industry groups attributed weaker retail demand in July as consumers flocked to the surging stock market and delayed buying a car in hopes of more stimulus and subsidies from central and local government.
“Auto dealers are facing increasing price pressure in the second half of the year to reach the full year target,” the state-backed China Association of Automobile Dealers said last week, is based on a nationwide survey of auto dealers.
CAAM said sales of new energy vehicles, including electric cars, rose 19.3 percent last month from a year earlier to 98,000, CAAM said, marking the first month of growth. for a year.
Tesla Inc. sold 11,014 Chinese-made Model 3 in the country in July, according to the China Passenger Vehicle Association.
The Chinese government is relying on electric vehicles to drive new demand, especially in lower-income rural areas. The coronavirus has weakened consumer sentiment and disrupted ride-hailing companies, major electric vehicle buyers.
Last month, Beijing launched a new campaign to encourage electric cars, endorsing more than a dozen models of electric cars made by Chinese carmakers, and encouraging local authorities and homegrown homes. car manufacturers promote them in small cities and towns, with the help of subsidies. The government also announced it would develop a network of toll collection facilities covering rural China, as part of a larger economic campaign to build “new type of infrastructure”.
The Ministry of Industry and Information Technology will ease restrictions and introduce other supportive policies to assist the ailing electric vehicle manufacturers affected by the pandemic.
The electric car maker backed by Alibaba Group Holding Ltd., XPeng Inc., said on Friday that it had applied to list its shares in New York, following the launch of rival Li Auto. Inc., backed by Tencent Holdings Ltd., on the Nasdaq Stock Exchange last year. month.
Raffaele Huang contributed to this article.
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