Jan-Feb 2020 New Vehicle Sales in China Fall 42%, SAIC Group Down by Half
2019 new vehicle sales reached 25.77 million units, plans underway to support automotive industry
Industrial production in China in the months of January and February 2020 fell 13.5% compared to the same period in the previous year due to factors including the impact of the new-type coronavirus-related pandemic (COVID-19), and automotive manufacturing fell a precipitous 31.8%. In addition, the total value of automotive related retail consumer goods sales, which is an indicator of consumption trends, fell 37.0% year-over-year (y/y) for the period.
According to the China Association of Automobile Manufacturers (CAAM), production volume in January and February 2020 declined 45.8% y/y to 2.048 million units and sales volume fell 42% to 2.238 million units. Most of the OEMs experienced significant year over year reductions. According to MarkLines’s data, the SAIC Motor Corporation Limited (SAIC Group), which has the top position in vehicle sales in China, also saw a significant drop in the sales volumes of its affiliated foreign-investment based joint ventures and the Group as a whole had sales of 436,000 vehicles in the period, down 55% y/y.
As one of the industry support measures, on February 25, 2020, the China Ministry of Industry and Information Technology (MIIT) released guidelines for industrial and communications companies to resume operation in a well-organized manner. The guidelines will actively stabilize consumption of durable consumer goods such as automobiles, appropriately increase the allocation of vehicle license plates in regions where there are restrictions on the purchasing of automobiles, and boost the consumption of automobiles and automotive related products. From March, support measures have been launched to promote consumption.
In addition, on January 20, 2020, the MIIT announced its forecast of 25 million new vehicle sales (a y/y increase of 3%). At the same time, the MIIT indicated that subsidies for NEVs (New Energy Vehicles), which had been scheduled to end at the end of 2020, are now under consideration.
China production and sales fall in January 2020: Impacted by coronavirus and Lunar New Year holiday (Mar. 2020)
NEV Industry Development Plan: China accelerating the sophistication of the NEV industry (Mar. 2020)
The first half of 2019 in the Chinese market：Vehicle Sales Decline by 12.4% to 12.3 Million Vehicles (Aug. 2019)
FY 2018 NEV Credit/ Corporate Average Fuel Consumption Credit of OEMs (Aug. 2019)
China NEV Alliances (Aug. 2019)