China’s February new car sales are in, and they are whatever you want them to be. They are up a lot if you look at February alone. They are down if you look at the first two months of the year. They are confused for those who don’t know where to look.
1.6087 million automobiles (all kinds) were produced in China in February, up 28.48 percent year-on-year. Sales of new autos amounted to 1.5671 million, an increase of 24.51 percent. This according to data published by the China Association of Automobile Manufacturers (CAAM) on Friday.
The results for January and February are thoroughly skewed, because this year, the Chinese New Year holidays fell into January, in 2011, the holidays were observed in February. The CAAM thankfully provides a two month picture. In January and February combined, automobile sales of 2.9543 million were recorded, down 5.96 percent year-on-year. Passenger car sales in the two month period were 2.3737 million, down 4.37 percent. In the same period, commercial vehicles amounted to 580,600 units, down 11.91 percent.
The continued weakness in the commercial vehicle sector does not bode well for the Chinese economy. In the business, commercial vehicle sales are seen as a leading indicator, passenger vehicle sales are commonly used as a trailing indicator. Weak commercial sales usually impact (Wuling-) van heavy GM. Due to strong sales of the Buick and Chevrolet brands, along with a record February for Wuling, GM and its Chinese joint ventures recorded an increase of 7.7 percent for the first two months of the year.
Copying the numbers released by the CAAM shouldn’t be too hard, but apparently, it is. Whereas officious organs, such as Xinhua, China Daily and Associated Press use the correct (rounded) number of 24.5 percent, other media, such as The Economic Times or Automotive News say the number was 26.5. That’s the number for passenger vehicle, gentlemen. Or maybe not: Chinaautoweb says passenger vehicle sales grew 25.2 percent.
The weakness in the car sector does not deter analysts. J.D. Power analyst Geoff Broderick says vehicle sales in China could jump as high as 35 million a year by 2018 — a near doubling of the market, the Wall Street Journal writes.
2 months doesn’t really make a 2012 trend does it?
Re: the picture… cue the “That’s what she said” jokes.
Bertel. Could it be that part of the country, richer coast, could be getting mature while the other is too undeveloped for a market? Or is the part of China rich enough for new cars still have much room to grow?
Mid and long term, I am very bullish on Chinese auto sales. Very simple reason: China still has a car density of around 60 per thousand. The average in developed countries is above 600. The U.S. stands at 800. Neither the richer and highly populated coast nor the poorer and more sparsely populated center are anywhere close to saturation.
These are short term hiccups. The huge growth of the past years has to be digested.
what are the stats on parking space and driving space per person per car in China then ? I think due to shortage of livable space in most places in China, surely car sales should be affected and constrained to well below 600 cars per 1000 ?
How is the world petroleum industry going to support that many more cars? Hint: It can’t.
Car ownership will go up in China, but I doubt it will ever reach a density of 600-800 thousand. Car ownership rates will continue to go up in China, but it will also go into decline in the the West.
Sex sells!
looking at her in the pic u definitely need a car with back seat.
Failing that a F1 design where the steering wheel can be removed in a hurry.
Excuse me, I need to print out this picture and I’ll be back in about five, no make that ten, yes make it definitely ten minutes.
Yeah, that picture and “limp” are oxymoronic to the extreme…
I see London, I see….
Sorry, this about China now was it?
Chinese people DO NOT WANT CHINESE MADE CARS. They know how cheap the garbage being made there is and they prefer imports. Only Americans are stupid enough to send all our manufacturing jobs to China and then wonder why our people are unemployed; families are disintegrating and our nation is going deeper into debt.
Be careful, you’ll be accused of being an extremist and not understanding how the world’s economy works!
Uh yeah I kind of got distracted, what’s the article about again?
Isn’t there a relative shortage of the model pictured? I mean, because of the “one child” birth policy of the Chinese gov’t forced upon their citizens, and the high “death” rate of female babies born to those parents in the agrarian hinterlands, this example of Chinese art would be less than 50% of the population…
What kind of car is that?
Logo on the hubcap says it’s a Citroen.
And clearly a premium model!
Ah, yes – and the chevrons are pointing almost straight up… how apropos!
Mao must be turning in his grave!
Mao was a horn-dog…..really like the ladies….lots of them. Look it up if you don’t believe me.