Chinese Auto Market bounced back up 5.6% in May 2020, reporting the first monthly gain in over 20 months. Indeed, 2.08 million units were sold in May, leading Year to Date sales to 7.78 million, down 23.8%. Geely and Changan scored the best Top 10 performances, while DongFeng and JAC dropped down in double-digits.
Market Trend in May
Following the tremendous drop in February (-76.2%) due to strict anti-covid19 restrictions, the market has promptly bounced back on track. Indeed, after losing respectively 39.3% and 10.9% in March and April, the market reported a moderate year on year improvement. Actually, this was the first monthly gain in over 20 months.
Indeed, 2.08 million units were sold in May (+5.6%), leading Year to Date sales to 7.78 million, down 23.8% from last year. Great support was given by the Light Commercial Vehicles, soaring 21.3% this month.
In the competitive arena, moderate gains were registered in May by all brands on the podium, while the best Top 10 performances were scored by Geely and Changan, both surging 19%. DongFeng and JAC dropped down in double-digits.
Post Covid19 Market Trend
The Covid-19 pandemic first manifested cases were in Wuhan, the capital of Hubei, China. Delayed and controversial responses by the Wuhan and Hubei authorities failed to contain the outbreak in the early stage and by January 29, the virus spread to all provinces of mainland China.
As a result, after having started negatively the new year with a 20% decline in January, the effects of the shutdown in China on the car market – due to the COVID-19 outbreak – were clearly reflected in February’s performance (-76.2%).
In March, while the Coronavirus was spreading all around the World, the Chinese car market was already bouncing back.
According to the data released by the Chinese Association of Automobile Manufacturers, registrations fell 35.5% in March with 1.505.256 units sold, ending the first quarter at 3.763.485 (-39.3%).
In April light vehicles sales were 1.74 million, down 10.9%.
Medium term market direction
Chinese domestic vehicles market has reduced the growing speed since 2016, after having achieved the 30% of global sales. The future evolution is clearly driven more by real solution regarding the two main issues created by the last decade market boom, pollution and traffic congestion.
Chinese government has shifted its attention from total volume to engine mix and is progressively creating incentives to small and low emission vehicles, while supporting investment in the AFVs, mainly electric. I
In this direction, in January 2017 it has been increased the duties for vehicles with engines displacements over 1.6 liter (from 5% to 7.5%). During the 2017, sales have been 28.2 million, up 0.9%.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models