China auto sales up for second straight month after almost two-year slump

China's auto sales in May rose 14.5% from the same month a year earlier, industry data showed on Thursday, the second consecutive month of increase as the world's biggest vehicle market recovers from lows hit during coronavirus lockdowns.

The outlook indicates challenges ahead as the industry works to emerge from the prolonged slump in demand. (Representational photo) (REUTERS)
The outlook indicates challenges ahead as the industry works to emerge from the prolonged slump in demand. (Representational photo)

The result followed a 4.4% rise in April and a 43% drop in March, when the pandemic pummelled demand. Before April, sales had suffered an almost two-year slump.

Sales in May rose to 2.19 million vehicles, showed data from the China Association of Automobile Manufacturers (CAAM), the country's largest auto industry association.

Also Read : Easing of coronavirus prevention measures helps China's auto plants rev up

Government support policies and improving consumer confidence contributed the May growth, said senior CAAM official Chen Shihua during an online briefing.

Also check these Vehicles

Find more Cars
Emflux Motors Emflux Two (HT Auto photo)
UPCOMING
₹ 4 - 4.50 Lakhs* *Expected Price
View Details
Bmw R 1250 R (HT Auto photo)
1254 cc
₹ 15.95 - 16.25 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Atumobile Atum Version 1.0 (HT Auto photo)
₹49,999***Ex-showroom price
Add to compare
Check latest offers
Svitch Bike Svitch Bike Svitch Xe+ (HT Auto photo)
₹98,999***Ex-showroom price
Add to compare
Check latest offers
Ultraviolette F77 (HT Auto photo)
₹ 3.80 - 5.50 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Emflux Motors Emflux One (HT Auto photo)
UPCOMING
₹ 5.50 Lakhs *Expected Price
View Details

However, developments with the global pandemic might impact overseas demand for China-made vehicles, Chen said.

In May, sales of new energy vehicles (NEVs) fell for an 11th month to 82,000 units, the data showed. NEVs include battery-powered electric, plug-in petrol-electric hybrid and hydrogen fuel-cell vehicles.

Automakers including Geely Automobile Holdings Ltd , Japan's Toyota Motor Corp and the United States' Ford Motor Co reported positive China sales in May.

CAAM last month said annual auto sales could fall 15% to 25% due to, for instance, government restrictions on movement and business aimed at containing the novel coronavirus.

The outlook indicates challenges ahead as the industry works to emerge from the prolonged slump in demand, which was also exacerbated by a trade war with the United States.

Xu Haidong, another CAAM official, said the industry body now thinks China's full-year auto sales will be better than expectations for a 15% fall. He did not elaborate.

First Published Date: 11 Jun 2020, 13:47 PM IST
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
1% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 98 Rs. 99
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
65% OFF
Ambrane 38W Fast Car Charger with Dual Output, Quick Charge 3.0 and Power Delivery, Type-C & USB Port, Wide Compatibility for Smart Phones (RAAP C38 A, Black)
Rs. 349 Rs. 999
4% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Musk After Smoke (7.5g)
Rs. 95 Rs. 99

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.