China sales increase 0.2% y/y to 2.52 million vehicles in January [ China ]
On February 13, 2017, the China Association of Automobile Manufacturers (CAAM) announced vehicle production and sales results for January 2017. Production and sales significantly declined on a month-over-month (m/m) basis, while production slightly fell and sales edged up on a year-over-year (y/y) basis. Production and sales were affected by fewer working days due to the earlier start of the Lunar New Year holidays, as well as a lower tax reduction for small vehicles. While a 10% tax is levied on a new vehicle purchase, the tax rate for small vehicles with 1.6L or smaller engines were reduced to 5% until the end of 2016. Thereafter, in January 2017, the small car tax rate was increased to 7.5%.
Overall vehicle production totaled 2.369 million units, down 3.9% y/y, while sales reached 2.52 million units, up 0.2% y/y. Passenger car production was 2.072 million units, a 4.2% decrease y/y, while passenger car sales totaled 2.218 million units, a 1.1% decrease y/y. Sales of small vehicles with 1.6-liter or smaller engines increased 1.3% y/y to 1.588 million units, which accounted for 71.6% of all passenger vehicles sold. In the commercial vehicle market, production totaled approximately 297,000 units, down 1.6% y/y, while sales reached approximately 301,000 units, up 11.3% y/y.
Production of new energy vehicles totaled 6,889 units, down 69.1% y/y, and sales of these vehicles totaled 5,682 units, down 74.4% y/y. By vehicle type, electric vehicle (EV) production was 5,857 units for a y/y decrease of 63.8%, and EV sales totaled 4,978 units for y/y decline of 67.8%. Plug-in hybrid vehicle (PHV) production totaled 1,032 units for a y/y decrease of 83.2%, and PHV sales totaled 704 units for an 89.5% fall y/y.
Vehicle exports in January totaled approximately 58,000 units, a 26% decrease m/m. Exports maintained y/y growth for a gain of 31%. By vehicle type, 43,000 passenger vehicles were exported, which was a decrease of 26% m/m and an increase of 53.5% y/y. Exports of commercial vehicles totaled approximately 16,000 units, a 26% decrease m/m and a 6.6% decline y/y.
(CAAM press release from February 13, 2017)