New energy vehicle booms Chinese auto market in February

On Mar. 10th, China Automotive Industry Association released the production and sales data of Chinese auto industry in February. The sales volume was 1,593,300, declining by 31.3% on month-on-month basis, which was out of expectation. But the total sales volume of Chinese auto industry was 3,912,900 in January and February, increasing by 4.3% on year-on-year basis.

The growth of Chinese auto market is still caused by SUV and MPV. In February, the sales volume of passenger cars increased by 6.4% and the number for first 2 months was 8.4%. The sales volume of SUV increased by 46.2% on year-on-year basis and 17.5% % minus 19.5% for MPV and commercial vehicle.

The sales volume of new energy vehicle was 6,045, increasing by 3 times on year-on-year basis, among which there were 2,890 electric cars, increasing by 4 times on year-on-year basis and 3,155 plug-in hybrid power cars, increasing by 2.4 times.

For Chinese local brand, the sales volume of passenger cars was 605,200, increasing by 19.7% and its market share increased by 4.8% on year-on-year basis. This kind of data for local passenger car, SUV and MPV were as follows: 173,700, minus 3.3% and minus 0.1%; 18.74%, 94.7% and 16.1%; 145,000, 21.3% and 2.7%.

In January and February, the exported volume was 113,100, declining by 8.6% on year-on-year basis. The related data for passenger car and commercial vehicle were 65,400 & minus 15.5% and 47,700 & 2.9%.

2015 is the last year for 12th 5-year plan so many factories of auto enterprises will be completed as planned such as Shanghai Volkswagen's in Changsha and FAW Volkswagen in Foshan. The capacities of FAW Volkswagen and GAC Honda will also increase. According to related statistics, total capacity of main 12 auto groups will be close to 40 million. As we know, the growth of Chinese auto industry will be about 7% in 2015 and volume will be around 25 million. That is to say over 10 million capacity will be left unused.

According to the data from China Automobile Dealers Association, the alert index of inventory in Feb. 2015 was 50.9%, declining by 5.4% on month-on-month basis, which was over warning line. Viewing 5 indexes consists of alert index, total demand, sales index and inventory index declined and staff index and operation state index increased. Distributors figured that the demand and sales volume declined in February and were cautious due to games and negotiations among enterprises.