June witness drops both in production and sales since 2008 in China

Chinese passenger vehicle reported the first monthly drops both in production and sales in June in eight years since December 2008, according to statistics of China Association of Automotive Manufactures.

Unlike what happened in 2008 whenthe global economic crisis caused the drops both in production and sale, this drops was resulted from the slowing of the domestic economy growth.

In June, the sedan sales in China were 846,200 units, falling 14.9% from a year earlier. Besides the SUV reported sales of 448,200 units, decreasing 2.4% on a year-on-year basis. MPV sold 126,000 units, dropping 0.61% compared with last year. And crossovers reported sales of 91,000 units declining 22.5% year-on-year.

Moreover, in the first half of the year, the accumulative sales of passenger cars were 10,095,600 units, and year-on-year growth rate was 4.8%, falling 6.38 percentage points from a year earlier.

Chinese domestic automakers have gain market share in the first half of the year amid the overall recession. These automakers have reported the accumulative sales for the first half of the year increasing 14.6% from a year earlier to 4,184,600 units, accounting 41.5% of total passenger car sales in China. While other foreign automakers dropped in their market share.

Part reason for domestic car manufactures’ growth is that they have been benefitted from the explosive growth of the hot-selling SUV.