The sales volume in January 2015 was lower than expectation

According to the data from China passenger car association (CPCA for short), the average sales volume of passenger cars per day in China in January was only 51,300, declining by 6% on year-on-year basis and 7% on month-on-month basis. The process was also the lowest on year-on-year basis.

CPCA had predicted the retail volume was over 1,900,000 in January, increasing by 9% on year-on-year basis and declining by 2% on month-on-month basis. The data for wholesale volume was 1,910,000, 12% and 3%. All the data was lower than expectation.

In according to CPCA, the reasons for low sales volume are the high discount in December 2014 and lower discount in January 2015. The market research of January 2015 shows the intention index was 4.8% lower and 5.4% for order index.

The auto sales volume trend progress kept being 68% steadily, which shows the stock pressure for auto enterprises was still high. But CPCA thinks auto distributors will continue the high discount before to deal with the stock due to Spring Festival in February.