SUV Leads China’ Vehicles Market in Reaping Year-on-year Increase in January

The production and sales of vehicles in China overall increased in January of 2016 compared to the same period last year according the newly released data from China Association of Automobile Manufacturers．However，the production and sales of MPV both showed downward．

In January of this year, the production of vehicles amounted to 2.452 million units, with a year-on-year rise of 7.14%; the sales reached 2.5006 million units, increasing by 7.72% from a year earlier. Among them, the production of the passenger vehicles reached 2.1484 million units, with a year-on-year rise of 9% while the sales amounted to 2.2287 million units, increasing by 9.27%. On the contrary, the production of MPV only reached 303,600 units, decreasing by 9.23%, while the sales totaled 271,900 units, decreasing by 3.46%.

Based on the year-on-year increase, the vehicle market in China still shows great potential and has rigid demand for vehicles. However, the situation of MPV segment may remains grim overall, though the implementation of national policy can result in rebound to some extents. According to CAAM, with a decrease of 5%, the competition among MPV manufacturers will be further intensified in 2016.

The sales of SUV increased by 60.51% to 784,900 units compared to that of the same period last year. The good performance of SUV will encourage automakers in China increase their investment on the development of new models, enriching products of SUV segments.