Auto sales up on subsidy change
October 27, 2011 Category Automotive, Automotive Metals & Minerals
Chinese automakers sold 1.64 million vehicles in September, up 5.5% from a year earlier, the China Association of Automobile Manufacturers said (CAAM). From October 1, the central government revised the CNY3,000 subsidy to cars consuming no more than 6.3 liters of fuel per 100 kilometers ― lower from the previous 6.9 liters per 100 kilometers. Demand for compact and midsized sedans was particularly strong, as they would no longer be able to take advantage from the subsidies. In September, GM’s sales rose 15.3% year on year to 240,244 units, while Shanghai VW’s sales rose 13% to 105,564 units. The CNY3,000 subsidy is the last of a host of government stimulus measures including tax rebates and other buyer incentives that boosted sales growth dramatically in 2009 and last year, helping China overtake the U.S. as the world’s biggest vehicle market. But demand has weakened since most stimulus measures expired at the start of this year. In the first nine months, carmakers’ total shipments of passenger vehicles to dealerships rose 6.7% to 10.7 million units. Luxury sales remain the best performers by segment. Volkswagen Group’s Audi unit said sales at its China joint venture, FAW-Audi, rose 33% last month to a new monthly record of 29,188 cars. BMW reported a 21% rise in sales to 18,588 units and Daimler’s Mercedes-Benz saw them rise 13% last month to 15,815. The hardest-hit segment continues to be commercial vehicles, where sales fell 4.8% to 3.1 million units in the first nine months. “Passenger vehicle sales may see negative year-on-year growth in the fourth quarter,” according to Rao Da of CAAM. Analysts said the sales dip could lead to a price war.
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