Chinese automobile industry finally experiences negative growth

The automobile market in China in 2012 has started on a bit of an off note, with very poor sales in January. According to a report appearing in the Shanghai Morning Post on March 13, the China Association of Automobile Manufacturers announced yesterday that the market has finally begun to contract and decline in the first two months of the year, as inventories continue to grow.

According to CAAM statistics, in the first two months of the year China produced and sold 2.9 million and 2.95 million vehicles, respectively. The respective figures represent year-on-year decreases of 4.93 percent and 5.96 percent. Among those, production and sales numbers of passenger automobiles over the two month period were 2.32 million and 2.37 million units, respectively 1.68 percent and 4.37 percent less than last year. Meanwhile, automobile inventories continue to grow. The difference between announced and actual sales in February reached 120,000 units.

As disputes in North Africa and the Middle East continue, the price of oil continues to increase, having topped $110 per barrel at the end of last month. This has helped increase the pressure on prospective consumers, and may be one of the reasons why the number of announced sales far exceeds actual ones.

Sales of small cars (engine size of 1.6 L or less) fell 6.9 percent over the two month period, totaling 1.15 million units. Meanwhile, sales of own brand automobiles fell a full 11.5 percent, finishing at 1.01 million units.

The fact that this February had 21 working days total has helped sales recover slightly from January. Currently there is a relatively high amount of agricultural workers embarking on new enterprises, which in turn has helped microvan sales maintain positive growth. The automobile market in China in 2012 has started on a bit of an off note, with very poor sales in January. According to a report appearing in the Shanghai Morning Post today, the China Association of Automobile Manufacturers announced yesterday that the market has finally begun to contract and decline in the first two months of the year, as inventories continue to grow.

According to CAAM statistics, in the first two months of the year China produced and sold 2.9 million and 2.95 million vehicles, respectively. The respective figures represent year-on-year decreases of 4.93 percent and 5.96 percent. Among those, production and sales numbers of passenger automobiles over the two month period were 2.32 million and 2.37 million units, respectively 1.68 percent and 4.37 percent less than last year. Meanwhile, automobile inventories continue to grow. The difference between announced and actual sales in February reached 120,000 units.

As disputes in North Africa and the Middle East continue, the price of oil continues to increase, having topped $110 per barrel at the end of last month. This has helped increase the pressure on prospective consumers, and may be one of the reasons why the number of announced sales far exceeds actual ones.

Sales of small cars (engine size of 1.6 L or less) fell 6.9 percent over the two month period, totaling 1.15 million units. Meanwhile, sales of own brand automobiles fell a full 11.5 percent, finishing at 1.01 million units.

The fact that this February had 21 working days total has helped sales recover slightly from January. Currently there is a relatively high amount of agricultural workers embarking on new enterprises, which in turn has helped microvan sales maintain positive growth.