Sales of Small Car Plummeted by 31% in China

Reportedly, sales of small cars dropped by 31.9% in China in August.

Sales of passenger vehicles were 1.759 million units in this month, including 0.917 million units of vehicles of new modes. And sales of small cars were 0.841 million units with a year-on-year decrease of 16.7%. Look back on 2011, market shares of small car was 22.1%, which, however, decreased to 15.3% by the end of August of this year.

Lack of development in products and changes in customerdemands may lead to decrease in market shares of small cars. To be notice, Chinese now prefer SUV, resulting in less demands of small cars to some extents.

Performance of JV brands, which was great last year, has shown negligible development this month. Small cars of Korean brands and of American brands have had worst market performance, with decreases of both 45% in sales. And that of Japanese brands has also plummeted by 33.7%, due to lack of improvement in products, failing to meet customer demands.