Overall the Chinese market improved by 16% in year on year comparison with 1.61 million units being sold according to CAAM, this figure includes. The news is likely to be a welcome relief for manufacturers in China who have increasingly seen their level of stock at dealerships mount amid rumors of a slowing economy. Rumors of government intervention to improve the market by lowering sales tax as they did in 2009 are likely to be shelved for the time being as the market finds its feet once again.Â May seems to have been an okay month for the Chinese car industry, sales are finally moving in an upwards direction rather than downwards as they have been doing for the previous four months of the year. Interestingly figures from CAAM show that SUV’s are the hottest thing to sell right now in China, despite gas prices being at an all time high. The SUV market was blessed in late April early May with the launch of several SUV superstars such as the Honda CRV and facelift Toyota Highlander, both of which likely added to the figures.
Sales of SUV’s increased by 49% in May, production was ramped up 61% to keep up with demand. The best sellers were of course the Great Wall Hover series which sold 22,189 units, the CRV sold 16,034 units, the VW Tiguan sold 14,012 and both the Audi Q5 and Toyota RAV4 were hovering around the 10,000 marker.
The top selling cars over the course of May were:
The SUV segment showed more signs of Chinese life with Great Wall playing an active part in the segment:
How about Chinese domestic brands? See them highlighted below in red. It’s a tough month for the local brands that seem to occupy the lower end of the segment.
The above 20 brands were the best selling brands in China over the course of May, all together they accounted for 945,531 sales, but once broken down into foreign V’s Chinese sales, its a different story: 711,756 cars sold were to foreign brands (exc sub brands) with the remaining 252,773 cars (inc sub brands) were to Chinese brands. The real shocker is Mercedes’ low sales in the China market, only 7,251 Chinese made cars sold in May.