China Auto Sales Post First Tepid Rise In A Year, But Only After Massive Discounts

Zero Hedge | 7/8/2019 | Staff
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Passenger car vehicles in China finally showed the first tepid sign of recovery after a historic and record-breaking plunge in the country over the last two years, according to The Business Times and preliminary data from the China Passenger Car Association. Of course, there is demand for everything... at the right price. And as it turns out, China was able to - at least temporarily – shake itself from its inventory glut as a result of, drumroll, offering massive discounts to clear excess inventory before new emissions rules take place on July 1.

Retail sales of passenger vehicles were up 4.9% to 1.8 million units in June from the year prior. This is the first increase since May 2018 for China, according to the CPCA data.

Data - Marklines - OEMs - Results - China

Thus far, according to data from Marklines, four OEMs have announced results in China:

Nissan announced on July 5 that it sold 131,071 units in June in China, reflecting a minor y/y increase. June sales of the X-Trail, Qashqai, Tiida, Kicks, Lannia, and Terra increased. Year-to-date (YTD) sales from January to June totaled 718,268 units, reflecting a 0.3% y/y decrease.

Toyota - Units - June - % - Increase

Toyota sold 140,800 units in June, reflecting an 18.5% y/y increase. YTD sales totaled 769,800 units, reflecting a 12.2% y/y increase.

On July 3, Honda announced that its June sales were 148,382 units for a y/y increase of 37.4%. Sales of the Accord, XR-V, Fit and Crider exceeded 10,000 units respectively, and sales of CR-V and Civic even exceeded 20,000 units. YTD sales totaled 745,409...
(Excerpt) Read more at: Zero Hedge
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